The Reserve Bank of Australia (RBA) left the cash rate unchanged at 3.60% in its September meeting. Governor Michele Bullock emphasised the Board’s cautious, data-driven approach – staying at current rates “meeting by meeting” and monitoring inflation trends. In fact, RBA minutes noted inflation is still above target and that the “decline in underlying inflation has slowed,” underscoring the need for caution. As a result, markets have scaled back expectations of an early cut – the odds of a November rate cut have plunged following the RBA statement.
Meanwhile, key housing indicators show the market is gradually reviving. Analysts note that earlier rate cuts this year have “trimmed mortgage repayments and supported modest buyer activity”. However, supply remains tight. A Reuters poll predicts only moderate price gains (around 5–6% over two years) because even with lower borrowing costs, “supply constraints persisting amid already stretched affordability” will cap any boom. The RBA itself acknowledged that the housing market is picking up (thanks to recent easing), but Bullock warned it’s still in a “very difficult position,” reminding us that fighting inflation – not boosting house prices – is the Bank’s priority.
Why Some Investors Are Exiting (Less Competition Ahead)
Interestingly, many long-term property investors are selling up. A recent industry survey found nearly 17% of landlords offloaded at least one home in the last year – the highest rate on record. In Victoria and Queensland, for example, roughly 30–35% of landlords sold at least one property. They cite clear reasons: reducing debt (41.7%), rising holding and compliance costs (40.4%), and hikes in land tax and government levies (32.9%). In short, many old investors feel the risks (high costs and uncertain policy changes) now outweigh the rewards, so they’re exiting the market.
This exodus is actually good news for new buyers. More properties are coming on market and less competition means you’re less likely to get into bidding wars. Indeed, only 42% of the homes sold by investors are staying in the rental pool – the rest are being snapped up by owner-occupiers and first-home buyers. In other words, plenty of those newly listed homes are ripe for savvy investors who know where to look. And since the RBA is holding steady, now’s a chance to lock in a purchase before the next easing cycle really kicks in.
What This Means for Buyers (Our Advice)
- Don’t bank on a November cut: The RBA has gone quiet on fast cuts. Plan as if rates stay around 3.6% (or even a bit higher) for now. Build a buffer into your budget so you can handle repayments at current rates.
- Be finance-ready and flexible: In sought-after areas, competition remains. Have your loan pre-approval sorted out (being “finance-ready” adds certainty to your offer). Where possible, make your bid more attractive by offering a larger deposit or flexible terms. For example, adjusting your settlement timeframe or releasing the deposit early can appeal to sellers.
- Act fast in the right spots: Seek suburbs where listings are picking up (this gives you more negotiating power), rather than ultra-tight pockets where stock is scarce. If you target hot properties, try to get in early – off-market or pre-auction where possible. Consider doing pre-auction offers or conditional bids in areas where demand is still high.
- Balance yield vs growth: If you’re investing for income, target areas with strong demand for rents. Rental yields are good, in particular for good location properties, so cash flow can be positive even if price growth is modest. And always stress-test your scenario: make sure rents would cover costs, if so, rates hang here a little longer.
At Investmate, we believe these conditions set up a rare opportunity for new investors. With some established owners stepping back, there’s a clearer field for buyers who are prepared and strategic. Timing remains important – the next rate cut is more likely early next year than in November – so use the pause to do your homework and strengthen your offer. In the meantime, locking in a purchase now can let you benefit fully when rates eventually ease.Ready to make your move? For tailored advice or to discuss your buying strategy, contact Investmate. Call us at +61 421 942 049 or book a free consultation today. Our experienced buyer’s agents are here to guide you and help secure the right property in today’s market.
