The Elephant in the Room
The property podcast for the thinking person.

Episodes

Episode 455: PIPA Report Reveals a Growing Threat to Australia’s Renters

Australia’s property investors are changing their behaviour, raising bigger questions about rental property supply and the future of the Australian rental crisis.

In this episode, Chris Bates and buyer’s agent Cate Bakos unpack the latest PIPA investor survey and what it reveals about why property investors are selling in Australia. They examine how negative gearing changes and capital gains tax changes are influencing investor sentiment, while also challenging the assumption that grandfathering negative gearing will necessarily keep existing investors in the market.

The bigger concern is how investor sell-offs affect rental supply. When established investment properties are sold to owner-occupiers, those homes can disappear from the rental pool, creating a potential impact of property investors leaving the rental market that extends well beyond individual portfolios. Chris and Cate explore whether Australia could face a residential property investor sell-off at a time when rental supply is already under pressure.

They also examine the investor exodus into other asset classes, including whether property investors are moving to commercial property in search of higher yields. Cate explains why commercial property requires different expertise and why chasing yield without understanding the risks can create problems for investors.

Episode Highlights

01:28 – PIPA Survey: The Investor Shift Nobody Can Ignore

04:20 – Why Investors Are Selling Despite Being Grandfathered

08:38 – Why Investors Aren’t Switching to New Builds

13:00 – Why Long-Term Investors Are Reconsidering Property

18:53 – Where Investors Are Selling and Why

20:52 – Who Pays When Investors Leave the Market?

22:32 – Why Qualified Property Advice Matters More Than Ever

27:09 – Are Property Falls as Bad as the Headlines Suggest?

30:58 – The Borrowing Capacity Squeeze on Investors

35:12 – Why Build-to-Rent Won’t Solve the Rental Shortage

38:07 – Chasing Yield: The Risk of Pivoting to Commercial

42:19 – PIPA’s Push for Better Investor Advice and Standards

44:41 – Outro: Submit Your Questions

About the Guest

Cate Bakos is a former President of the Real Estate Buyers Agents Association of Australia (REBAA) and is closely involved with the Property Investment Professionals of Australia (PIPA), where she advocates for investor education, consumer awareness and qualified property investment advice.

She is also the Owner and Buyer’s Agent at Cate Bakos Property, bringing extensive experience working directly with property buyers and investors across the Australian market. Her frontline perspective gives her a practical understanding of how investors respond to changing market conditions, tax settings and property values.

In this episode, Cate draws on that experience to unpack the latest PIPA Investor Survey, including why investors are selling, what happens to established rental stock when they exit, and why some investors are looking towards higher-yielding residential and commercial property. She also discusses the importance of qualified advice as investors navigate an increasingly complex property environment.

Connect with Cate

Resources:

Visit our website: https://www.theelephantintheroom.com.au

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Chris Bates