Who Is My Competition — and How Do I Get Ahead of the Pack?

Who Is My Investment Property Competition — and How Do I Get Ahead of the Pack?

When buying an investment property, most buyers focus on what they’re purchasing — the suburb, the dwelling type, and the numbers.

Far fewer stop to ask a more important question:
Who am I competing against — and how do I beat them?

Recent changes to the Housing Australia Guarantee Scheme (HGS) have significantly reshaped buyer competition across Australia’s major capital cities. For investors — particularly Australian expats — understanding these shifts is now essential.

The HGS Changes That Reshaped the Market

On 1 October 2025, the Australian Federal Government introduced major changes to the HGS, designed to increase access to the property market. Two changes, in particular, have had an immediate impact:

1. Income Caps Were Removed

Previous income limits of $125,000 for individuals and $200,000 for couples were removed entirely. This opened the scheme to:

• Higher-income earners

• Dual-income households

• Buyers who previously would not have qualified

The result was a much larger buyer pool entering the market simultaneously, with only 2% Deposit for a single parent or a 5% Deposit for a single person or a Couple.

Why Is This a Game Changer?

The Home Guarantee Scheme (HGS) fundamentally changes how first-home buyers enter the property market.

Under the scheme, the Federal Government guarantees part of the purchase price:

• Up to 18% for eligible single parents, and

• Up to 15% for eligible single buyers or couples

This means the buyer only needs to contribute a small deposit from their own funds.

From a lender’s perspective, the government guarantee effectively replaces the remaining deposit that would normally be required to reach an 80% loan-to-value ratio (LVR). As a result:

• The buyer avoids Lender’s Mortgage Insurance (LMI), and

• The loan is assessed and priced as though the borrower has a 20% deposit.

This is critical, because borrowers with an effective 80% LVR:

• receive discounted interest rates, and

• are viewed as lower risk by lenders.

In practical terms, this can save buyers tens of thousands of dollars in upfront and long-term costs, while allowing them to enter the property market years earlier than would otherwise be possible.

That’s why the HGS doesn’t just help first-home buyers — it materially changes who investors are competing against, particularly in markets where price caps have increased, and access has widened.

2. Postcode Price Caps Were Increased

Price caps under the scheme were also lifted substantially, particularly in capital cities:

• Sydney: up to $1.5 million

• Brisbane: up to $1.0 million

• Melbourne: up to $950,000

• Perth: up to $850,000

This allowed HGS buyers to compete for more established, better-located properties — many of which had traditionally been investor territory.

The Immediate Impact: More Buyers, Slower Lenders

Unsurprisingly, these changes triggered a flurry of lending activity.

Lenders were inundated with applications, particularly from first-home buyers attempting to secure access under the revised rules. Where credit assessment timeframes had previously been 1–7 days, many lenders experienced unprecedented delays, with files sitting in queues for 21–28 days before being picked up.

For unprepared buyers, this created frustration and missed opportunities.

For prepared investors, it created an opening.

So… Who Is Your Competition Now?

In this new environment, investors are increasingly competing against:

• First-home buyers with low deposit requirements

• Higher-income buyers are entering earlier than before

• Owner-occupiers targeting “investment-grade” stock

This has had a clear effect on demand for:

• Established homes

• Well-located, middle-ring properties

• Standard, livable dwellings that appeal to both buyers and renters

What was once considered a “safe, standard” investment property is now highly sought after — not because it changed, but because the competition did.

How Serious Investors Get Ahead of the Pack

Here’s the key distinction we’re seeing in practice:

Not all buyers are treated equally by lenders.

If you are a serious investor and you have:

• a fully assessed loan approval, and

• cash ready to deploy

You can effectively skip the queue.

Why Contracts Trump Pre-Approvals

When you secure a Contract of Sale, particularly with a finance clause and settlement date, the transaction becomes time-sensitive. Lenders will typically prioritise these files over:

• speculative pre-approvals

• first-home buyer applications under the HGS

• files without an executed contract

In simple terms:
A signed deal gets attention.

Investors who can proceed as cash buyers, or near-cash buyers with minimal conditions, move even faster — often transacting while others are still waiting for their file to be reviewed.

What This Means for Australian Expats

Buying from offshore already comes with challenges. Add increased buyer competition and lending delays, and preparation becomes critical.

For expats, getting ahead now means:

• Having the finances fully assessed before making offers

• Understanding who else is active in your target price bracket

• Moving decisively when the right opportunity appears

• Not relying on outdated assumptions about lender timeframes

The biggest risk isn’t paying too much — it’s being ready too late.

Preparation Is the Real Advantage

Government incentives don’t just help buyers — they reshape markets, competition, and lender behaviour.

In the current environment, the investors who succeed are not the ones with the best intentions — they’re the ones with:

• approvals in place

• funds ready

• and the confidence to act decisively

Know who you’re competing against — and make sure you’re positioned to move faster than they can.

Planning to Buy in 2026? This Is the Time to Get Organised

One final point that’s becoming increasingly important.

If you don’t currently have a valid pre-approval in place and are planning to purchase an investment property in 2026, now is the time to get organised.

Given ongoing lending congestion and the structural changes created by the HGS, investors should allow up to one month for a full assessment and approval — even before a contract is in hand. While timeframes can be improved, planning for longer turnaround periods ensures you’re not caught short when the right opportunity arises.

Having a finance assessment early means:

• You can act immediately when a suitable property comes to market

• You avoid being stuck in lender queues during peak activity

• You position yourself to compete effectively against first-home buyers and other investors

In a market where speed and certainty matter, preparation is no longer optional — it’s a competitive advantage.

If you’d like to book a complimentary discovery call, feel free to get in touch with Adam Kingston, Director of Australian Expat Finance and our Expat Home Loan Specialist, to discuss your plans and next steps.

The information contained is general information only and does not consider your objectives, financial situation and needs. Please talk to us if you need a fast-tracked home loan, and we can help you find a lender that has the processes in place to process the application quickly. We strongly recommend that you do not act on any information provided on this website without individual advice from your trusted advisor. You should also obtain a copy of and consider the Product Disclosure Statement for all financial products before making any decision.

Australian Expatriate Finance always tries to make sure all information is accurate. However, when reading our website, please always consider our Disclaimer policy.