Why Is Now a Good Time to Buy Rental Property?

2025 has been a huge year for property investors. Rapid growth in investment lending has sparked talk of a possible crackdown on loans to investors.

Here, we explain what is happening and why you might bring your buying plans forward.

The past year has been extreme for investors.



Record-tight vacancy rates have pushed rents higher.

Interest rates on investment home loans are at their lowest level since late 2023.

National property prices are also rising at the fastest pace in more than two years.

It is no surprise that investors are buying in large numbers.

At the same time, lending to investors is growing at the quickest rate in a decade, and the Australian Prudential Regulation Authority (APRA) is paying close attention.

Some commentators now expect APRA to step in and tighten rules for investment lending to cool price growth.

So if you are wondering, is it good to buy a rental property now? It helps to understand the backdrop first.

Is Now a Good Time to Buy Rental Property? Understanding the 2025 Lending Picture

There is no question that investors have been driving the property market this year.

In the September quarter alone, the number of new investment loans jumped by 13.6%.

That equates to 57,624 new investment home loans in just three months, which is the highest figure since early 2022.

Looking over the past year, lending for investment properties has grown faster than lending to owner-occupiers, based on ABS data.

This swing towards investors is exactly what APRA is watching.

Is It Good to Buy Rental Property Now if APRA Is Worried?

What has APRA concerned is the possibility of a rise in riskier loans. In particular, the regulator has flagged an increase in what it calls high debt-to-income borrowing by investors.

That is where the warning lights switch on for would-be landlords who are asking themselves, 'is now a good time to buy rental property?'

In a recent report, APRA noted that it is making sure banks are ready to use extra macroprudential tools if needed to strengthen lending standards.

In plain language, APRA is reminding lenders that, as the industry regulator, it has the power to change the rules for investment loans. It has done this before and could do it again.

Is Now a Good Time to Buy a Rental Property? Looking Back to 2014–2018

You might feel that 2014 was a long time ago.

Seasoned investors, however, may remember it as the year APRA stepped in to cool an overheating market. The regulator capped annual growth in lending to property investors at 10%.

APRA then tightened things further by placing a 30% limit on interest-only loans, which many investors prefer because they can reduce upfront repayments.

These measures stayed in place until APRA eventually relaxed its investment lending rules in 2018.

That period showed how quickly policy changes can alter the landscape for buyers.

Could History Repeat for Property Investors?

Conditions in 2014 looked quite similar to what we see now.

Property values were climbing quickly. Interest rates were trending lower. Household income growth was sluggish.

Today, we are again seeing strong price gains, low investment loan rates compared to recent years, and pressure on household budgets.

This mix has led many in the market to speculate that APRA might bring in fresh rules aimed at today’s group of property investors.

If that happens, borrowing capacity and product options for new investors could change in a short space of time.

What It All Means if You Plan to Buy an Investment Property

The decision to buy an investment property should never be rushed. It is a major financial move and needs proper planning.

If APRA tightens investment lending rules, investors who wait may find their borrowing power has dropped or that banks have tougher approval criteria.

At the same time, APRA’s recent comments could be the push some investors need to act sooner and secure finance under today’s settings.

If you are asking yourself, is now a good time to buy a rental property, with possible rule changes ahead? , it is wise to get clear advice on your position.

Get Clarity with the Osinski Finance Team Today!

If you want to buy a home, invest in a property, or get started as a first-time home buyer, it helps to know where you stand before any new rules come in. If you are asking yourself is it good to buy rental property now, then getting clear professional advice is the smartest first step.

Osinski Finance can review your borrowing capacity, explain how possible APRA changes may affect you, and match you with suitable home loan options.

For clear, tailored guidance instead of guesswork, contact us today and put a solid plan around your next rental property purchase.

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