If you’ve been feeling shut out of the property market lately, you’re not alone. Interest rates are higher than they’ve been in over a decade, lending policies are stricter, and for many Australians, the dream of owning a home feels further away than ever. But here’s the question we need to ask:
Can you still afford property in 2025?
The short answer: Yes—but only if you shift your strategy.
The Hard Truth About Today’s Loan Environment
Let’s get real. In 2025, the cash rate sits at 4.35%, compared to just 0.10% in 2020. That’s not just a number—it’s a game-changer.
With average home loan interest rates now hovering between 6% and 7%, a $600,000 mortgage will cost you over $40,000 per year in interest alone. And that’s before you’ve paid a cent toward the actual property.
Banks have also pulled back on what they’re willing to lend. A dual-income household making $150,000 could borrow around $950K just five years ago. Today? You’re looking at $700K—and that’s with no kids or existing debt. For many Aussies, this isn’t fear-mongering—it’s cold, hard math.
Who’s Feeling It Most?
It’s the first-home buyers, the young families, and single-income earners who are getting hit hardest. With property prices staying firm and borrowing power dropping, saving for a 20% deposit has become a mountain too steep for many.
In Sydney and Melbourne, that means forking out around $200,000 just to play the game. No wonder so many are throwing in the towel or putting things on pause.
But here’s the risk with that: while everyday buyers wait, investors are moving in. Because they understand what most people don’t—this isn’t a crash. It’s a consolidation. And when the dust settles, the opportunity will be gone.
So… Is Property Still Worth It?
Absolutely. Here’s why.
Australia is in a housing shortage crisis. We’re not building fast enough, and yet we’re welcoming over 400,000 new residents a year. That’s a demand surge with nowhere to go but up.
Yes, the short-term environment is tight. But over the long haul? The fundamentals of property investing in Australia remain rock solid.
Historically, real estate has outpaced inflation, built generational wealth, and provided reliable cash flow for those who invest smart. It’s not about timing the market perfectly—it’s about time in the market.
How to Get In Without Getting Burnt
ou don’t need to buy a million-dollar house in your dream suburb. You need a strategy.
At EST, we guide clients to think differently. Instead of chasing emotion, invest like a strategist:
Look interstate – focus on high-growth, low-entry suburbs in QLD, SA, and WA.
Think cash flow – positive income properties help cover rising rates.
Consider dual-income or rentvesting – live where you love, invest where it makes sense.
Many of our clients have started with just $70K deposits and now own properties generating $200–$300/week in positive cash flow—even with interest rates at 6.5%.
It’s not about buying big—it’s about buying smart.
The Biggest Mistake? Waiting for “Normal”
Here’s the truth: the old “normal” isn’t coming back. Rates may ease one day, but banks won’t suddenly return to 2020’s ultra-generous lending. Waiting for the stars to align is like waiting for the perfect time to have a child. It doesn’t exist. And the longer you delay, the further ahead others will get. Those who take action now—who adapt to this new market—will be the ones sitting on equity when everyone else is still sitting on the fence.
So… Can You Still Afford Property in 2025?
Maybe not in the way you once imagined. But with the right strategy, a smart plan, and a focus on cash flow over postcode, the answer is yes.
You don’t need to be wealthy. You don’t need a massive deposit.
You just need the right guidance and the courage to move forward.
Don’t wait for perfect. Let’s build your plan today.