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The portfolio strategy investors are turning to in 2026
Investors looking to enhance their portfolios towards the end of 2026 need to find the right balance of growth and yield and avoid artificially inflated markets.
The national property market has shifted significantly throughout 2026, prompting investors to reassess their portfolio development plans.
Arvon Property Group founder Andrew Havig said that since the property taxation changes announced in May, investors have been forced to reconsider their investing strategies.
“We have had to consider those changes from the budget. They have had a big impact on the market,” Havig said.
“The fundamentals of the markets that we previously liked are still the same, but we have definitely pivoted towards more of that cash flow focus even more than we already have.”
He said the changes announced in the budget had led investors to target cash flow over capital growth, while he believed the real value came in finding a balance.
Speaking on The Smart Property Investment Show, Havig said that demand for assets that gave significant cash flow had increased as investors sought to solidify their own serviceability.
“In uncertain times, when you are trying to scale a property portfolio, you need to make sure you can hold it and make sure the bank can lend you more money,” he said.
Havig said that, in the early stages of an investment journey, buyers could minimise their own downside risks by “loading the bases”.
“What I mean is buying fundamentally good assets where people want to be, incomes are strong, there’s affordability, but it costs you very little to hold,” he said.
He said low holding costs could both minimise downside risk and help investors grow their portfolios by leveraging asset growth.
“It’s just not a wise strategy in the market to be accepting a really low yield on the basis that it’s a growth asset. There are assets that combine capital growth and cash flow that will help you build more sustainably,” he said.
To find the right asset, Havig said buyers didn’t need to target properties in the middle of nowhere, with value to be found in the capitals and regional cities.
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For new investors, Havig said it was important to understand their portfolio goals.
He said that understanding whether they were motivated by equity or creating passive income would be a major factor in how they should shape their journey.
Havig said that when building a portfolio, he preferred to target properties at the more affordable end of the spectrum, with affordability and low entry costs ensuring there was always demand.
“Within resi, we love buying everything below $1 million, even around that $500,000–$600,000 mark because the yields are better and the government always stimulates that part of the market,” he said.
“With the 5 per cent deposits scheme, there is a lot of heat on that part of the market, even in the position that we are in now.”
While investors were often steered in a particular direction by what they had heard from others, Havig said it was important to make sure they weren’t purchasing in a market that was artificially inflated.
He said that while investors could kickstart a market's growth, if it lacked the fundamentals for owner-occupiers, it could fail to translate into meaningful, long-term performance.
“I think we should be careful of markets that are too investor-focused.”
Tax incentives are a benefit, not a strategy
Havig said that early-stage investors were often making their decisions based on the wrong factors.
While investors were considering new-build assets because of the tax changes, Havig said it was not a viable strategy for those looking to scale.
He said that investors should see tax incentives as an advantage, not a central part of the decision-making.
“Tax outcomes are just nice to have at the end of the day, but there’s no sense in spending a $1 to make 50 cents,” Havig said.
“They’ve done well with the tax, but poorly with the growth and cash flow aspect, so it is hard for them to scale.”
Listen to the full episode here
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