The RentBetter Letter - Issue # 2: 27 February 2026
Issue #2 of the RentBettter Letter is out. Stay up to date with what matters.
The rate rise has landed. The real story is how the market absorbed it...
Auction rooms are thinner, investors are still active, rentals remain tight, and tax settings are back in the political frame.
Here’s what matters right now.
🕒 The 60-Second Snapshot.
- Interest rate rise: The RBA lifted the cash rate to 3.85% in early February. The focus now is whether buyer and investor behaviour meaningfully shifts.
- Auction clearance rates: Remain fairly stable according to Domain. Parts of Sydney and Melbourne have seen clearance rates drop, and according to news, demand is still healthy, but properties are selling ahead of a scheduled auction.
- Capital Gains Tax discount under review: Treasury is examining whether the current 50% CGT discount could be reduced to as low as 30%. No policy has been agreed, but the AFR examined the impact on rent, and Ray White’s chief economist explains that Victoria is an example to demonstrate that rental supply depends on investor participation, and if investor activity falls, available rentals and affordability will suffer.
Takeout: Confidence has cooled slightly. Activity has not collapsed.
📈 Investors Are Still Active: Tighter Lending to Come.
Reporting tells a consistent story.
- Investor Lending Fairly Strong: APRA reported high investor lending growth and volume through to the end of 2025.
- Activating Limits: Obviously, the growth caused some concern as APRA will now make lenders assess borrower risk more strictly, which is likely to slow lending without stopping it. It means borrowing may be a bit tougher for the next little while
- Mortgage Stress: REA found that one-third of homeowners now report mortgage stress in 2026, even though arrears remain low, suggesting pressure on households.
Takeout: Confidence has cooled slightly. Activity has not collapsed.
🎯 What Smart Landlords Are Doing.
- Stress testing repayments at current rates
- Minimising vacancy days over chasing marginal rent increases
- Considering whether now is the right time to fix mortgage rates
- Explore pre-paying a portion of your interest before June 30, to include this year
📦 The Property Punchline.
AI is coming for property management too…
Next edition: March inflation data and what it means for the next RBA move.