Key takeaways
65% of surveyed investors said their investment intentions had declined following the Federal Budget.
Some brokers report fewer investor enquiries and less competition for certain properties.
Economists say reduced investor activity may create more opportunities for owner-occupiers and first home buyers.
Understanding your borrowing capacity and budget may help you act when opportunities arise.
Much of the discussion following the 2026 Federal Budget has focused on what the proposed changes could mean for property investors.
But for some home buyers, a slowdown in investor activity may create opportunities that were harder to find just a few months ago.
New Aussie research found investment intentions have softened since the Budget announcement, with 65% of surveyed investors reporting lower investment intent than before the reforms were announced.
Investor sentiment since the Budget
Measure | Result |
Investors whose intent decreased | 65% |
Investors whose intent fell by 2+ points | 51% |
Investors whose intent increased | 10% |
Investors who paused investment plans | 35% |
Source: Aussie Investor Post-Budget Research, June 2026
While the research does not suggest investors have left the market altogether, it does point to many reassessing their plans while they seek greater clarity on the proposed changes.
Tax adviser Nathan Rigney, director of NGR Accounting, said some investors who were already uncertain about entering the market have become even more cautious.
"People who were already hesitant now feel completely beaten. Instead of looking for a strategy, they simply decide they cannot do anything," Rigney said.
That hesitation may help explain why investment intentions have softened since the Budget announcement.
What reduced investor activity may mean for home buyers
AMP Chief Economist Shane Oliver said a reduction in investor activity could create more room for owner-occupiers.
"In principle, if there's less investor activity in the property market, then that creates more opportunities for owner-occupiers, including first home buyers."
Oliver said any benefit is likely to depend on local market conditions, property type and the level of investor participation in a particular area.
For buyers who have previously competed with investors for the same properties, fewer active investors may mean less competition at open homes and auctions in some markets.
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Buyers may already be seeing conditions shift
Investor activity is only one factor influencing market conditions.
Recent property market reporting has also pointed to softer conditions in some markets, including higher levels of vendor discounting and longer selling times compared with earlier periods.
Together, these factors may create more opportunities for some buyers to negotiate or take additional time when assessing a property.
However, market conditions can vary significantly between locations, meaning buyer experiences may differ from suburb to suburb.
Brokers are seeing signs of changing buyer behaviour
Matthew Hawley, an Aussie Broker in Queensland, said the change in investor activity is already becoming noticeable in some parts of the market.
"There has been a drop in listings and a huge drop in investor activity. But as I'm talking to a lot of customers, there's a lot of opportunity there for owner-occupier buyers, first-home buyers, and people looking at upgrade homes, simply due to the lack of competition at the moment."
Some brokers are also seeing buyers reconsider how they enter the market.
Samantha Harvey, an Aussie Broker in Victoria, said some prospective investors are now looking at owner-occupier purchases instead.
"Pretty much everyone I'm talking to who was trying to get into the market as an investor is now reconsidering and looking at going in as an owner-occupier."
While individual circumstances vary, the shift highlights how proposed policy changes can influence buyer behaviour beyond the investor market alone.
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What opportunities might buyers see?
A reduction in investor activity does not automatically lead to lower property prices. However, some buyers may experience:
Less competition from investors on certain properties
More time to conduct due diligence before making an offer
Greater negotiating opportunities in some markets
More choice if fewer investors are competing for the same homes
The extent of these opportunities is likely to vary between locations and property types.
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Some markets may already be seeing fewer competing offers
John Stratton, Aussie Buyer's Agent, said he has observed a reduction in buyer competition in parts of the Perth market.
"Prior to the announcement, there were, on average, five offers being presented on good-quality homes. Now it's down to maybe two or three. That's presenting some really good opportunities for customers."
Conditions can vary significantly between markets, but examples like this may help explain why some buyers feel they have more room to negotiate than they did earlier in the year.
Samantha Harvey recently worked with a buyer who felt market conditions had become more favourable.
"I spoke to a customer on the weekend and they're happy they're proceeding. They said it's definitely much easier for them, and they think they're getting a really good bargain on the place they're making an offer on compared to a month or two ago in Melbourne."
These examples are anecdotal and may not reflect broader market conditions, but they illustrate how some buyers are responding to changing levels of competition.
Questions home buyers may want to ask before making a move
Not every market is experiencing the same conditions, and not every buyer will face less competition.
If you're considering entering the market, it may be worth asking:
Am I competing for the same types of properties that typically attract investors?
Have local market conditions changed in my area?
Do I understand my borrowing capacity and budget?
Have I factored in purchase costs beyond the property price?
Would obtaining pre-approval help me move more confidently if the right property becomes available?
Understanding these factors may help buyers assess whether changing market conditions have created opportunities in their local area.
What buyers can do if competition eases
Whether competition continues to soften remains uncertain. However, buyers who are actively searching may benefit from being prepared if opportunities arise.
Buyer readiness checklist
Question | Why it matters |
Do I understand my borrowing capacity? | Helps you know your budget before making an offer |
Have I reviewed my deposit and purchase costs? | Reduces the risk of unexpected expenses |
Do I have pre-approval? | May help you act more quickly when suitable properties become available |
Have I researched the local market? | Conditions can vary significantly between suburbs and regions |
Have I sought professional advice? | A free^ appointment with an Aussie Broker can help you understand your borrowing capacity and options. |
A changing market may create different opportunities
Not every buyer will experience the same conditions, and not every market will respond in the same way to changing investor activity.
Oliver said there may be benefits for some buyers if investor participation declines, but the broader impacts may be more mixed.
"So yes, it may benefit first home buyers but not be so good for people who remain in the rental market long term."
Rigney said investors should focus on understanding the facts before making major decisions.
"The biggest message I would give investors is this: do not make a decision based on headlines. Understand the numbers, get advice, and work out how the rules apply to your own situation before you buy, hold, or sell."
For buyers who have been competing against investors, however, the current period may present an opportunity to reassess the market and understand what options may now be available.
Not every buyer will experience the same conditions, but for those who have found competition challenging in recent years, this may be an opportunity to take a fresh look at the market and explore what opportunities could now be available.
