The TRUTH About Investing In 2026
I still feel like saying ‘happy new year’ to people I haven’t seen in a while.
But I need to stop myself because as I write this, two things are true.
First, it’s February.
And second, the year’s not new anymore.
It’s also true that 2026 will slip away fast if we aren’t careful.
As an investor, this forces me to ask two questions.
What exactly is happening in the market?
And how can we take advantage of it?
Here’s my insider’s take on what’s happening in 2026, and how to play the game.
The ‘Australian Market’ Is A Myth
There’s no question that real estate’s going from strength to strength.
Nationally, house prices rose 7.5% last year, beating the expectations of most economists.
It’s been a bonanza for most investors.
However, while people talk about the Australian real estate market as a whole, the truth is there’s no such thing.
Different states are different markets, and even cities and rural areas can perform very differently in the same state.
That figure of 7.5% is made up of star suburbs and absolute shockers.
Because when it comes to real estate …
… momentum is everything.
Good areas go up in price … they overshoot … other areas get their act together and become good … and the money heads there next.
It’s about reading the market and getting ahead of this cycle, not behind it.
Some areas we weren’t looking closely at a year or two ago have appeared on our radar and suddenly they represent real opportunities.
And they’re all published in our annual Locations Report.
If you haven’t read it yet you can click here for a copy.
The suburbs from our 2025 report grew on average 9.6%, and all had rental yields above the national average. The top performer from our list was Townsville which grew at an astonishing 22.6%.
This report tells you where to go next, just before they surge.
Rates?
I understand rates are still a worry. However, instead of being guided by fear, be guided by the facts.
Last year I predicted rates would go down slightly. And I was right.
Over the course of the year they fell 3 times.
This year I predict a period of stability.
And despite a slight increase last month, I expect rates at the end of the year will be pretty much where they are now.
This means you can lock in your numbers with a lot more confidence than guesswork.
And if you’re a ‘nervous’ first-timer, now is the perfect time to get in.
Ignore This Indicator At Your Peril
Everyone knows that demand drives prices.
But not everyone thinks about the other side of the equation – supply.
I guess that’s because demand is easy to spot. Price movement, rental yields, days on the market, new schools, cafes and restaurants.
But supply? That’s tougher because the numbers are hidden away in council planning applications and zoning.
However it’s just as important.
Probably more so.
One reason real estate will keep growing in 2026 is because supply is critically low.
In fact, low supply probably has more to do with house price growth than high demand.
The government’s plan to build 240,000 houses is nothing more than a pipe dream.
Last year we built just 160,000. And I can’t see this changing much any time soon.
As a result, this shortfall’s going to continues to drive prices higher.
Good for investors but bad for anyone wanting to buy.
The trick of course is knowing where supply is constrained the most because that’s a sign that prices are on the move.
Where’s The Smart Money Going?
We’ve Been Urging Investors To Look Closely At Melbourne.
Even though it’s been tough going in Victoria lately, it’s coming back in a big way.
In fact, KPMG rank Melbourne as the #1 city for house price growth.
Higher than Brisbane, higher than Perth and higher than Sydney.
And vacancy rates are expected to FALL from 2.1% to just 1.4%.
It’s tight now, and it’s going to get tighter.
It’s why we’ve been getting our clients set in Melbourne. They’ve snapped up some incredible opportunities which will pay off in a big way.
The good news is if you’re quick there are still amazing deals in suburbs which are about to take off.
What About Brisbane?
It’s cooling, but there are still plenty of opportunities in Brisbane. It’s in what we call a stock-picking phase, not a rising tide phase.
There are some areas we’re still extremely excited about and it would be unwise to write it off.
And What About Perth?
If you’re already in Perth, you probably want to hold. The crazy growth of recent years is unlikely to be repeated any time soon. But thanks to billions of mining dollars it’ll hold up nicely.
Regional Markets?
Regional markets have been particularly strong lately.
As buyers have been priced out of the big cities, they’re turning their attention to large regional cities. And prices are moving very nicely in a few of these.
It’s the ripple effect in action. Prices are rippling out of major cities into large regional centres.
But today it’s not a temporary thing. Plenty of these regional centres have built strong, self-sustaining economies which are going to stand the test of time.
OK, that’s where it’s all heading now.
The best advice I can give you is to get in now because the going is great, and we’re heading into a long period of growth.
A golden age might be a better way to describe it.
And anyone who sits this out is going to regret it in a few years’ time when they realise how far ahead they could have been.
Instead, let’s talk about what’s possible for you.
You’re invited to book a time with one of our Senior Property Wealth Planners who can show you what this looks like and how it works.
They’ll map out an overview of what you should do, and when.
They’ll give you the steps to make it happen.
Plus show the opportunities available in the market.
They’ll even tell you how many properties you could invest in right now if you choose to. The more you get now, the faster you’ll go.
And of course answer any questions you have.
There’s no obligation or pressure here, and no cost either.
We figure if we give you actual value and information, you’ll see how deep our knowledge and experience is, and might consider using our services if you move ahead.
Enter your details below and we’ll contact you to set up a time.