Why investors are targeting second-hand homes in regional towns, inflating prices and outbidding first-time buyers

Despite challenges faced by first-time buyers in the housing market, August marks one of the busiest months for auctioneers and estate agents, indicating strong investor interest in cheaper regional homes.

The Institute of Professional Auctioneers and Valuers (IPAV) forecasts significant price increases at the lower end of the housing market, anticipating an annual price growth of 10% by the year's end.

Investors are increasingly targeting cheaper regional properties as a strategy to navigate the rent-cap rules, which is driving up demand and consequently, house prices in those markets.

As inflation is predicted to hit 10% in 2024, driven largely by the current trends in the housing market, first-time buyers are being pushed toward smaller, more affordable homes.

Read at Independent