Login
Can young investors still build property portfolios in 2026?
Kev Tran, founder of Kev Tran Group, has spoken with First Property Buyer Show host Emilie Lauer about how new investors can grow their property portfolios in 2026.
He said the lending environment had changed in recent years, with the Australian Prudential Regulation Authority (APRA) imposing more restrictions on investors, while rising interest rates have created uncertainty.
However, he said that with the right fundamentals, inexperienced investors can still build a healthy portfolio and grow their wealth.
Tran said investors should strategically consider where to invest, utilise government schemes like the 5 per cent Deposit Scheme, and make the most of their circumstances.
Devising your strategy
According to Tran, before purchasing a property, new investors need to evaluate their budget, loan repayments, and preferred markets, taking current interest rates into account before committing.
“Consider, ‘What markets can I afford to hold with the negative cash flow?’ Because the reality is with residential assets, they're all negatively geared with the current rates,” he said.
Tran said that less experienced investors can find a decent property for at least 450k, whether a house in the regions or an apartment in the suburbs.
He advised investors to do their due diligence, noting that some regions were not sustainable options due to a lack of economic diversity, and warned against high-rises, which often came with higher strata fees.
“There are some townhouses or villas where there's maybe four ground-level apartments, and there's only like a driveway you share. So maintenance and common areas aren't going to be a headache.”
When it came to choosing which jurisdiction to invest in, Tran said both regional and metropolitan Victoria offered opportunities, having started to bounce back after years of underperformance.
He said inexperienced investors should look at suburbs in the inner and middle rings, including Brimbank, Sunshine, and Deer Park, which were still reasonably close to the city.
“They're growing pretty well, 12 per cent plus in the last 12 months and probably about that much as well above the COVID peak. They’re definitely past the recovery stage and booming now,” he said.
Using first home buyer government schemes
Tran said young investors shouldn’t be strategic only about the location and assets they invest in, but also about how they use first home buyer government schemes.
He said that, given that first home buyer grants and the 5 per cent Deposit Scheme required the purchaser to live in the property for 12 months, investors had to carefully choose the location.
“If the location that you're looking to buy and the asset also align with what may be a good investment, then you've hit the holy grail. Unfortunately for many people, it's quite rare.”
“If you’re in Sydney and want to take advantage of this 5 per cent scheme or first home owner grant, but the only thing that works is a two-bedroom high-rise in Bankstown, then that may not be the best fit.”
“You’ve got to factor in the high supply risk, strata fees, special levies. It's just a headache and a half.”
Tran said investors would find better opportunities in regions like Townsville or Ballarat, where they could use government schemes to buy a property, live there for 12 months and then rent it out.
Now it's an investment property, and you still have the six-year rule for capital gains exemption. There are a lot of benefits.”
Additionally, Tran said that investors using the five per cent deposit scheme needed to ensure they didn’t overstretch their debt.
“Because a 95 per cent loan is a massive loan, the repayments will be significant, especially in a rising interest rate environment,” he said.
Building a portfolio on average income
Tran said that regardless of whether they choose to use government schemes, young Australians wanting to invest don’t have to be held back by an average income and should make the most of their conditions.
Tran said that, despite a significantly different lending environment for investors in recent years, there were still avenues to grow portfolios, whether for single- or dual-income households.
“Depending on what your circumstances are, you’ve just got to do what's best that you can, knowing your options,” he said.
“A lot of investors that we work with will be young singles or people who just want to get started on their own. They're living at home, in their 20s, maybe on their first job , and it's okay.”
Tran said banks were often more lenient when buyers were living at home and saving money on costs such as rent, and urged young investors to take advantage of those circumstances.
He also said that when assessing borrowing capacity, lenders often consider a maximum debt-to-income (DTI) ratio of 6, giving investors with an income of $70,000–80,000 some leeway.
“Someone like that could buy properties worth $450,000, $500,000, potentially a bit more,” he said.
Tran said investors with a dual-income and currently renting should take advantage of their position before having dependents and needing to pay costs such as school fees.
“You just have to make the most of your own circumstances,” he concluded.