Demand for higher-yielding properties following federal budget changes has reinforced the need for specialist landlord insurance, according to the new PropTrack/Terri Scheer Investor Report. 

While investor lending fell by 9% in the June quarter, following years of strong activity, the report finds investors are increasingly shifting towards cashflow-focused property strategies, in response to budget reforms to negative gearing and capital gains tax settings.

They are “the most significant changes to housing taxes in more than two decades”, the report says.

“Since the budget announcements, investor enquiries on realestate.com.au have shifted towards higher-yielding rental properties, that are more likely to be a cashflow positive investment,” the report finds.  

“Prior to the budget, Terri Scheer claims experience indicates that loss-of-rent events remain an important consideration for landlords, particularly where a property cannot be occupied, repaired or re-let quickly. 

“If investors continue shifting toward higher yielding investments, securing appropriate rental income protection will become increasingly valuable as portfolio risks skew toward positive cashflow. This is where specialist landlord insurance can play an important role in helping investors protect rental income, manage uncertainty and build long term resilience.” 

Terri Scheer executive manager Carolyn Parrella says strong rental demand and improving yields reinforce residential property as an attractive long term investment option for many Australians.  

“The findings show investors aren't necessarily leaving the market, they're adapting to it. The report reinforces the importance of taking a considered approach to protecting and managing investment properties in a changing market environment, enabling landlords to make more informed decisions and navigate change with greater confidence.” 

The report analyses key metrics, including new investor loans, investor sales, rental vacancy rates, rental yields and median advertised rents, utilising PropTrack data.  

Click here for the full report.