Australia’s property market growth may open new opportunities for investors in the new year.
Australia’s housing market has experienced positive growth across both capital cities and regional areas over the last 12 months. Recent data from research firm Cotality shows national dwelling values rising by around 1.1 per cent in the month of October. Meanwhile, more than a third of all suburbs around the country now have a median house price of $1 million or more.
This continued upward trend has helped homeowners build substantial equity and the opportunity to invest.
Equity can often serve as a springboard for a new property purchase, enabling you to grow your investment portfolio. With many markets forecast to continue rising in 2026, now may be the time to consider how borrowing to invest could work for you.
What is equity?
Equity is the gap between what your home is worth today and what you still owe on your mortgage.
You build equity as you pay down your mortgage and as the value of your home grows. So if you buy a home for $1 million with a $200k deposit and pay off $100k over five years, you will have $700k left on your home loan. However, the value may have grown to $1.5 million. As a result, you will have around $800k in equity. This can potentially be leveraged to borrow and invest.
With property prices projected to remain steady or grow in many parts of Australia, the equity in your home may continue to increase by 2026. This means that without making any drastic changes, you could find yourself in a stronger financial position.
Equity can give you the foundation to invest sooner than expected.
Borrowing to Invest in 2026
Step 1: Figure out your borrowing capacity
Start by speaking with a mortgage broker who can assess your financial situation and determine how much you can comfortably borrow. They will also help you understand the monthly costs of investing and secure pre-approval so you’re ready to act quickly when you find the right property.
Step 2: Research locations and properties
Once you know your budget, explore suburbs with consistent long-term growth by reviewing infrastructure plans, vacancy rates and rental demand. Take the time to identify properties that are likely to attract reliable tenants and deliver steady capital gains over time.
Step 3: Lock in a quality property manager
After you’ve made your purchase, engage an experienced property manager who can help you source quality tenants and minimise vacancies. A good manager will stay on top of maintenance and compliance, protecting your investment and supporting strong long-term performance.
The right team and the right strategy can turn equity into long-term wealth.
Want to invest in 2026? Connect with your local Professionals office for help identifying suitable properties and ongoing property management.
