Perth, Jan 28: With changes to APRA lending rules set to make buying property under a trust structure significantly harder, investors who delay entering the market risk being locked out in coming years, according to property investor Nathan Birch of B Invested.
Birch, who has built a personal portfolio of more than 350 properties, said impending regulatory changes will require investors purchasing under a trust to declare their personal debt levels, removing a strategy that many borrowers previously relied on to expand portfolios.
‘Moreover, due to changing bank regulations, buying under a Trust as an investor will become much harder as you will now need to declare your own debt level in order to qualify.’
Birch said trust-based purchasing was never a sound long-term strategy when driven purely by lending policy rather than fundamentals, warning that borrowers often failed to consider downstream consequences.
According to Birch, broader market forces — including the first home buyer scheme, strong migration inflows and tighter lending conditions — are converging to intensify competition, particularly in the affordable housing segment.
He noted that while the Reserve Bank held interest rates at its final meeting of 2025, banks continue to offer relatively cheap lending, creating a narrow window of opportunity for investors willing to act early.
“While the Reserve Bank is holding firm against inflationary pressures, banks are still offering cheap loans that present a great opportunity for investors to get into the market and start to build a portfolio as debt essentially becomes irrelevant with inflation,” Birch explains.
Birch said government incentives and migration trends will further squeeze supply at the lower end of the market over the next few years.
‘The issue with the new home buyer scheme and an influx of migrants continuing into Australia, is that after two years they will have the option to take part, so an already constricted market of affordable sub $500,000 homes will be much harder to find in coming years.’
He said his strategy continues to focus on affordable stock across Australia, including bulk purchases.
‘Buy in affordable suburbs has always been my message, I’m still buying $110,000 to $400,000 properties right across Australia. It may not be where you want to live right now, but the ultimate destination is preceded by the journey.’
‘If you’re an investor, buying in bulk will absolutely help you build a portfolio, I’ve recently purchased for $146,000 a block of seven units that rent for $400 per week each.’
Birch also warned that investors targeting higher-priced markets may struggle as first home buyers enter with low deposits and stamp duty exemptions.
‘Investors looking at higher priced markets will find it harder now to build a portfolio because of the scheme attracting first homeowners who only need to pay a 5% deposit and zero stamp duty. The sooner you can start buying investment properties, the better, as coming years will be competitive.’
He pointed to investor Lisa D’Angola as an example of navigating restrictive lending conditions following the 2017–2019 APRA changes. D’Angola, who began building her portfolio through B Invested during that period, now owns 19 properties and is set to reach 21 by February 2026, crediting the use of a buyer’s agent and access to second-tier lenders.
Birch said the case highlights that opportunities remain in any lending environment for investors equipped with the right strategy, team and understanding of policy shifts.
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