Investor loan activity has seen a notable rise, with new investor loans increasing by 13.2% between the December 2023 and December 2024 quarters, according to ABS data.

However, despite the uptick in investor participation, a significant portion of these investors are selling their properties prematurely.

Research from the Australian Housing and Urban Research Institute (AHURI) and Curtin University reveals that over 20% of investors sell within the first year, and more than half dispose of their property within two years.

Only one-third of investors retain their properties for more than 20 years. Dr. Ranjodh Singh, lead author, notes that those who hold properties for longer periods are more likely to realise substantial wealth.

Nationally, 55% of rental investments are held for two years or less, 28% for two to six years, and 17% for over six years.