How is this year shaping up for investors?

So, you’re thinking about investing? Smart move. But where do you look, and how can you get started? Here’s what investors can expect in the year ahead.Investor activity has surged over the past year, with confidence returning to the market, underpinned by strong rental demand, increasing rental yields and a shifting economic landscape.

(function(videojs) {var videoId = "6370946660112-50";var video = videojs(videoId);var globalId = "iris_6370946660112_50";video.pluginDev(videojs.mergeOptions({}, { start_up_next: false, end_up_next: false, global: globalId, ssl: true, thumbs_down: false, thumbs_up: false}));})(window.



videojs); (function(videojs) {var videoId = "6370946660112-50";var durationElement = document.createElement('div');durationElement.className = 'vjs-overlay-duration';var durationFragment = document.

createDocumentFragment();durationFragment.appendChild(durationElement);var video = videojs(videoId);video.overlay({ overlays: [{ align: 'bottom', content: durationFragment, showBackground: false, start: 'loadstart', end: 'play' }]});video.

on('loadstart', updateVideoDurationOverlay);video.ready(function() { var isOverlayActive = true; video.on('play', function() { if (isOverlayActive) { isOverlayActive = false; video.

overlay({ overlays: [] }); } }); updateVideoDurationOverlay();});function updateVideoDurationOverlay() { var myPlayer = this; if (myPlayer.mediainfo && myPlayer.mediainfo.

duration) { var duration = secondsToMMSS(myPlayer.mediainfo.duration); durationElement.

textContent = duration; }}function secondsToMMSS(totalSeconds) { var minutes = Math.floor((totalSeconds) / 60); var seconds = totalSeconds - (minutes * 60); // remove any decimals seconds = Math.round(seconds); var result = minutes + ":" + (seconds < 10 ? "0" + seconds : seconds); return result;}})(window.

videojs);As a result, the outlook for property investors in 2025 remains positive. Here’s what investors can expect in the year ahead.Investor confidence is risingInvestor activity has surged over the past year, with Australian Bureau of Statistics figures revealing investor lending has jumped nearly 30%.

”We’ve definitely seen an increase in investor activity over the last 12 months,” says CommBank Home Lending Specialist, Carla Maughan.Buyer’s Agent Jo Vadillo agrees, saying: “The reason that we're seeing investors come back to market is there's an increase in confidence. The economic outlook is positive.

”Over the next 12 to 24 months, real estate agent Elliot Gill predicts that we'll start to see an overall pick up in the whole market because “we're going to see much higher levels of buyer activity”.Rents are soaring, but so are costsFor investors, rising rents are a huge win. With fewer rentals on the market and demand going through the roof, Elliot explains rental yields in 2025 are better than ever.

"The current market for investors is positive because we're only seeing rents rise currently,” he says.“There’s fewer and fewer rental properties becoming available and most of the investors that are currently selling are being bought by owner occupiers.”With limited rentals on the market, rental yields look healthy.

But with rising costs, it's important to weigh up the outgoings against the positive cash flow. Picture: GettyBut it’s not all smooth sailing. Elliot says in Victoria, recent land tax changes have pushed some investors to sell, further tightening rental supply and driving up rents.

"The new land taxes in Victoria have effectively made investors more likely to sell, rather than buy. And the direct impact of those land taxes has been fewer properties available for renters, and rents continuing to go up.”He says for investors looking to enter the market, taking into account ongoing costs, such as land tax or owners corporation fees, is key.

“Provided they keep a handle on these items then it should be a great investment for them,” he says.Forget capital growth, 2025 is all about yieldsIn 2025, investors are looking for reliable properties that are low maintenance, with high-yielding returns. “Typically, they're looking for rental return rather than capital appreciation.

” Elliot says.There’s a shift towards apartments and townhousesIn response to rising land taxes and affordability challenges, Elliot explains, many investors are turning to apartments and townhouses over standalone houses. "At the moment, I think what investors are looking for are apartments and townhouses, which obviously have a low land tax implication in comparison to houses with land.

" Affordability constraints are seeing many buyers and investors opt for townhouses and apartments, over stand alone dwellings. Picture: realestate.com.

auBefore purchasing a property, Carla says investors should consider a number of things, such as rental yields, vacancy rates and associated costs. “These costs may look like up-front, ongoing, or out of the blue expenses."It’s not just about Sydney and MelbourneNot surprising, affordability is a key factor in 2025, which has seen investors seeking opportunities beyond the key capitals.

"The areas that the most investor activity are driven by is affordability,” Jo says.“So we're looking at a couple of cities such as Brisbane, Adelaide, Perth, and also major regional hubs.” She says areas such as the Hunter region, which has got amazing local infrastructure, lots of employment opportunities, and is highly sought after by tenants, are seeing increased investment interest.

Financial fitness is crucialIf you're looking to invest in 2025, Jo says now is the time to start getting your finances ready. “The two key things I'm telling my clients to get themselves ready to buy this year are: number one, get themselves financially fit,” she says.“And the second thing I would say is get your property team around you, and that includes the experts that are going to help you buy a property.

That could be your lender, but also a buyer’s agent."The experts have your backProperty investment can be a wild ride but you don’t have to go through it alone. The most important thing to remember is you are not alone - there is a whole team of experts to help you on your journey.

Picture: Getty“CommBank’s network of experienced lending specialists can help to answer all of the questions you may have when purchasing an investment property,” Carla says.“We can make the process of buying an investment property feel simple.“At CommBank, we absolutely understand it can be daunting to purchase an investment property, but we're here to help you every step of the way, from start to finish on your property journey.

"With 2025 shaping up to be a massive year for investors, now’s the time to get your strategy locked in, find the right property, and make some smart moves in the market.Disclaimer: This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.

You should consider seeking independent financial advice before making any decision based on this information. Applications for finance are subject to credit approval, eligibility, terms and conditions, fees and charges may apply. Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945.

The post How is this year shaping up for investors? appeared first on realestate.com.au.

.