"Ultimately, it is going to be harder for them to do that now," Powell said.She said the reforms could reduce cash flow for rentvestors, tighten borrowing capacity and make property and share investing a less tax-effective pathway for Australians trying to save for a home deposit.Tim Lawless, the executive research director of Cotality's Asia-Pacific divison, said rentvesting remains a relatively niche strategy, with recent lending data showing only 5.6 per cent of first-time buyers were purchasing as investors However, she warned this could also shrink rental supply over time, as investors pull back from existing properties, tightening rental vacancy rates and pushing up rents in already undersupplied areas