‘They tend to move with the cycles’: The times property investors fled the market
Property investors are increasingly exiting the market due to pressures from interest rates and regulatory changes. Recent federal budget policies aimed at curbing negative gearing and limiting capital gains tax discounts may further deter investment. Experts suggest that these shifts could lead to a significant decline in investor demand for residential properties.
- ▪Property investors motivated by capital gains have exited the market when faced with pressures from interest rates or regulation.
- ▪There have been four notable dips in lending to investors over the past 12 years, correlating with declines in property prices.
- ▪Federal budget policy changes could spark another retreat from investors, with some already avoiding auctions.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.