Federal Budget Changes, Rising Costs & What Property Investors Should Be Thinking About in 2026

Mitchell James Posted on 02 Jun 2026

With ongoing discussion around proposed Federal Budget changes, rising holding costs and broader economic uncertainty, many Australian property investors are taking the opportunity to reassess their portfolio and financial strategy.

Importantly, this isn’t about panic or suggesting investors should rush to sell — property continues to be one of Australia’s strongest long-term wealth creation assets. However, changing market conditions can be a useful reminder to review whether your current investment strategy still aligns with your goals, lifestyle and financial position moving forward.

So, what changes are investors talking about?

While not all proposed measures have been finalised, there has been increasing discussion around:

Potential changes to negative gearing and tax concessions
Ongoing land tax and compliance cost increases
Higher interest rates and lending pressures
Increased tenancy regulations and rental compliance requirements
Changes to superannuation taxation and investment structures
Construction, insurance and maintenance costs continuing to rise
Broader cost-of-living pressures impacting household cash flow

Combined, these factors are causing many investors to ask an important question:

“Is my portfolio still working for me the way it should?”

For some investors, the answer may still be yes.

Many landlords remain in strong positions and continue to benefit from:

Solid long-term capital growth
Extremely low vacancy rates
Strong rental demand
Increasing rental returns in many areas
The long-term security of owning quality property assets

For these investors, the current market may simply be a reminder to review finance structures, ensure rents remain aligned with the market, or consider future acquisition opportunities.

For others, it may be time to reassess.

We are increasingly speaking with landlords who are considering whether holding certain properties still makes financial sense — particularly where:

Loan repayments have increased significantly
Cash flow has become tighter
Equity could be better utilised elsewhere
The property no longer suits their long-term strategy
Upcoming maintenance or renovation costs are becoming substantial
They are nearing retirement or looking to simplify their portfolio

For some investors, selling one asset may help reduce overall debt, improve cash flow, free up capital or create flexibility for future opportunities.

Every investor’s situation is different.

There is no “one size fits all” approach when it comes to property investment. What’s right for one investor may be completely different for another depending on:

Financial goals
Age and stage of life
Debt levels
Cash flow position
Risk tolerance
Future plans

That’s why periods of market change can actually be valuable — they encourage investors to step back, review their portfolio objectively and make informed decisions rather than simply staying on autopilot.

Now could be a good time for a portfolio review.

Even if you have no immediate plans to sell, understanding your property’s current value and market position can help you make clearer decisions moving forward.

An updated market appraisal can provide insight into:

Current buyer demand
Estimated sale value
Rental market conditions
Equity position
Recent local sales activity
Potential opportunities within the market

We’re here to help.

If you’d like a confidential conversation about your investment property, current market conditions or simply want an updated appraisal for planning purposes, our team is always happy to help.

Whether you’re considering selling, holding, refinancing or expanding your portfolio, having the right information allows you to make decisions with confidence.