For many Australians, the answer appears to be yes, especially if recent trends in investor lending are anything to go by.

According to a recent report from PropTrack[i], investor activity has rebounded strongly over the past 18 months, with new investor loans climbing to levels not seen in nearly a decade.

This surge comes after a quieter stretch following mid-2022, when the Reserve Bank began lifting interest rates. With rental markets still extremely tight and rents continuing to rise[ii], more investors are stepping back in—and any further rate cuts won’t hinder this momentum either.

Investor lending has become a substantial share of new loans, approaching multi-decade highs in some smaller states, and the strongest nationally since 2017. In contrast, owner-occupier activity has picked up only modestly. This suggests investors are seeing opportunities others might be missing.

While the market is showing signs of growth, investing in real estate isn’t a guaranteed path to easy profits. Investors still need to do their homework and work closely with their local Raine & Horne agent to secure a quality, well-located property that can ultimately pay for itself. Apartments are increasingly appealing in this landscape, often attracting lower land tax liabilities than houses. In fact, you may be able to own multiple apartments before reaching the land tax threshold in your state or territory—and for what it’s worth, there’s no land tax at all in the Northern Territory[iii].

Victoria, however, is a notable outlier. Investor interest remains more subdued there, likely due to a combination of softer rent growth and increased land tax burdens. Still, with Melbourne’s median home price now below Adelaide’s and Brisbane’s, and rate cuts now beginning to flow through to the market, investor interest in Victoria is set to pick up speed.

That said, land tax remains a key consideration. In NSW, for example, investors with combined landholdings above the $1,075,000 threshold are liable for an annual land tax of $100 plus 1.6% of the land value above that amount. A portfolio with $2.5 million in unimproved land value would result in a $22,900 tax bill.

Here’s the breakdown:

$2.5 million – $1,075,000 (general threshold) = $1.425 million (taxable land value).

$1.425 million × 1.6% = $22,800, plus $100 base tax = $22,900 total land tax liability.

The bottom line is that strong rental growth, tight vacancy rates, and the prospect of further rate cuts all point to now being a potentially favourable time to invest, provided you do your homework. Focus on securing a quality, well-located property, and make sure you understand the tax implications with the help of your accountant.

In particular, be mindful of land tax and other holding costs to ensure the investment stacks up financially.

[i] https://www.proptrack.com.au/insights-hub/investors-are-busy-buying-up-a-storm-in-all-but-one-state/

[ii] https://cdn.rea-group.com/wp-content/uploads/2025/04/17100502/REA-Group-Market-Insight-Rental-Prices-March-2025.pdf

[iii] https://business.gov.au/finance/tax/taxes-on-your-property#:~:text=pest%20eradication-,Land%20tax,except%20for%20the%20Northern%20Territory.