First homebuyers are snapping up rentals as three states show signs of investor sell-off

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Investor,Housing Market,Land Tax

Investors say they're selling properties in Victoria due to the threat of increased taxes, changing tenancy laws and rising interest rates. But Victoria's not the only state where the number of renters appears to be falling.

For Mr Guengoer, the experience had been 60 per cent excitement, 40 per cent fear of having a large mortgage.

It's a business that increasing numbers of investors across three states appear to be getting out of. Among respondents who had sold a property in the past year, 40 per cent had sold in Queensland and 31 per cent in Victoria. A spokesperson from WA's Department of Energy, Mines, Industry Regulation and Safety said more investors moving back into short-stay holiday accommodation after the pandemic may also have contributed to the fall in active bonds there.

One investor exiting is Simon Rowland, who sold all five of his Victorian investment properties in the last four years. The value of Mr Rowland's rentals roughly doubled in the time he held them, although his profit was lower after capital gains taxes and the repayment of mortgages. Although the tax changes were dropped before coming into force, Mr Kingsley said it was enough to spook the market and cause a sell-off.

"We welcome all buyers into the market. Fundamentally, though, the price of the properties is still going to be held up by the fact that there's a lack of supply," Mr Williams said.

 

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