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Buying your first home is a thrilling milestone, but let’s be honest - it can also feel like navigating a maze. The good news? The First Home Guarantee benefits are designed to make that journey smoother and more affordable. If you’ve been wondering how to get a leg up in the property market, you’re in the right place. I’m here to walk you through how the first home guarantee scheme works, who qualifies, and how you can make the most of it. What Are the First Home Guarantee Benefits? So, what exactly are these benefits, and why should you care? The First Home Guarantee is a government initiative aimed at helping first-time buyers get into the property market with a smaller deposit. Traditionally, lenders want you to put down at least 20% of the property price to avoid paying lenders mortgage insurance (LMI). That’s a hefty chunk of change for many. Here’s the kicker: with the First Home Guarantee, you can secure a home loan with as little as 5% deposit without having to pay LMI. That’s a game-changer. It means you can buy your dream home sooner, with less upfront cash, and keep more money in your pocket for moving costs, renovations, or even a celebratory dinner. How Does It Work? The government guarantees up to 15% of the property price. You only need to provide a 5% deposit. The guarantee applies to new or existing homes, including off-the-plan properties. There’s a cap on the property price depending on the location. Imagine you’re eyeing a $600,000 home in Melbourne. Normally, you’d need $120,000 for a 20% deposit. With the First Home Guarantee, you only need $30,000 upfront, and the government backs the rest of the deposit gap. Pretty neat, right? Who is Eligible for the First Home Grant in Australia? Eligibility is a key piece of the puzzle. Not everyone can jump on this bandwagon, but if you tick the right boxes, you’re in luck. Here’s who can apply: Australian citizens aged 18 or over. Sorry, permanent residents and visa holders don’t qualify. You must be a first home buyer - meaning you haven’t owned or had an interest in a residential property in Australia before. Your household income must be below the set threshold. For singles, it’s $125,000 per year; for couples, $200,000 combined. The property you’re buying must be your principal place of residence. The property price must be within the regional caps. For example, in Melbourne, the cap is around $700,000 (this can vary, so always check the latest figures). If you’re planning to buy with a partner, both of you need to meet the criteria. Also, you can only use the guarantee once, so it’s a one-time opportunity. How to Apply and What to Expect Applying for the First Home Guarantee is straightforward but requires some preparation. Here’s a step-by-step guide to get you started: Check your eligibility. Use the official government website or speak to a mortgage broker. Find a lender who participates in the scheme. Not all lenders offer loans under this guarantee, so do your homework. Get pre-approval for your home loan. This helps you understand your borrowing capacity. Submit your application for the guarantee through your lender. They’ll handle the paperwork with the government. Once approved, proceed with your property purchase. Keep in mind, the scheme has limited places each financial year, so timing is crucial. Don’t wait until you find the perfect home to start the process. Tips for a Smooth Application Gather your documents early: proof of income, ID, and any other paperwork your lender requests. Work with a trusted mortgage broker or buyer’s advocate who knows the ins and outs of the scheme. Stay within your budget and property price caps to avoid surprises. What Are the Limitations and Things to Watch Out For? While the First Home Guarantee is fantastic, it’s not without its quirks. Here are some things to keep in mind: Limited spots: The government only offers a set number of guarantees each year. If you miss out, you’ll have to wait until the next round. Property price caps: These vary by region and can limit your options, especially in hot markets like Melbourne. Not for investment properties: The scheme is strictly for owner-occupiers. You still need to cover other costs: Stamp duty, legal fees, inspections, and moving expenses aren’t covered. Loan conditions: You must meet your lender’s criteria, which can include credit checks and serviceability assessments. Understanding these limitations helps you plan better and avoid disappointment. Making the Most of the First Home Guarantee Benefits Now that you know how the scheme works, how can you leverage it to your advantage? Here are some practical tips: Start saving early: Even with a 5% deposit, you’ll need funds for other upfront costs. Get professional advice: A buyer’s advocate or mortgage broker can help you navigate the market and the application process. Research property prices: Stay within the caps and look for areas with growth potential. Consider new builds: Sometimes, new homes qualify better under the scheme and may come with additional incentives. Plan for the long term: Think about your future needs and how the property fits into your lifestyle and investment goals. Remember, this scheme is a stepping stone. It’s about getting your foot in the door and setting yourself up for success. If you’re ready to take the plunge, the first home guarantee scheme could be the key to unlocking your dream home sooner than you think. With the right preparation and guidance, you’ll be turning the key to your new front door before you know it. Happy house hunting!

Established or New Build? The $900k Melbourne Investor Question One of the biggest questions Melbourne property investors are asking right now is simple: “Should I buy an established property or a brand-new build?” It used to be a simple question, until the Budget 2026 announcement. It is now no longer a simple question. You almost need an accounting degree and a crystal ball to answer that. After the 2026 Federal Budget changes, where negative gearing benefits are being reshaped to favour new residential properties. The Government’s Budget explainer states that negative gearing benefits are being limited to new residential properties, while losses on established residential properties purchased after the relevant cut-off may no longer be immediately offset against salary and wage income. That sounds like a win for new builds. But property investing is not just about tax. It is about rent, land value, tenant demand, holding cost, resale depth, scarcity, depreciation, maintenance risk and long-term capital growth. Tax benefits can help you hold the property. They do not automatically make it a good property. Let’s look at the numbers. The Scenario: $900k Purchase, $130k Income For this comparison, let’s use a realistic Melbourne investor profile. Assumptions Assumption Figure Investor income $130,000 p.a. Purchase price $900,000 Loan $720,000 Loan-to-value ratio 80% Interest rate 6.25% interest-only Inner-metro established rent $700 per week Outer-ring new build rent $600 per week For someone earning $130,000, the investor generally sits around the 30% marginal tax bracket, before Medicare levy, under current Australian resident tax rates. For simplicity, we will use an approximate 32% tax benefit, allowing for Medicare levy. Disclaimer: This is not tax advice. It is a practical investment modelling exercise. Option 1: $900k Established Inner-Metro Property Let’s say the investor buys an established townhouse, villa unit or modest house in an inner or middle-ring Melbourne suburb. It costs $900,000 and rents for $700 per week. Annual Rental Income Item Amount Rent: $700 x 52 weeks $36,400 Estimated Annual Holding Costs Item Estimate Interest on $720,000 at 6.25% $45,000 Property management, approx. 7.7% incl. GST $2,803 Council, water, insurance $4,500 Maintenance allowance $2,500 Land tax estimate $2,050 Total annual cost $56,853 Victoria land tax is based on the taxable value of landholdings, not the total purchase price of the property. Investment properties are generally assessable unless an exemption applies. Established Property Cash Flow Item Amount Rental income $36,400 Less holding costs -$56,853 Pre-tax cash shortfall -$20,453 p.a. Weekly shortfall -$393 per week Under the new policy direction, if this is an established residential investment property purchased after the relevant cut-off, the investor may not be able to immediately offset that rental loss against salary income. Industry summaries of the Budget measures describe this as established-property rental losses being quarantined rather than freely offset against wage income. So the investor may need to carry the full cash shortfall. That is roughly: $20,453 per year out of pocket About $393 per week Not catastrophic. But not loose change either. Option 2: $900k Brand-New Outer-Ring Property Now let’s say the investor buys a brand-new house-and-land package or new townhouse in an outer-ring Melbourne suburb. Same purchase price: $900,000. But the rent is lower: $600 per week. (optimistically) This is common. A brand-new property can look attractive on tax, but the location may not command the same rent as a stronger inner or middle-ring suburb. Annual Rental Income Item Amount Rent: $600 x 52 weeks $31,200 Estimated Annual Holding Costs Item Estimate Interest on $720,000 at 6.25% $45,000 Property management, approx. 7.7% incl. GST $2,402 Council, water, insurance $4,500 Maintenance allowance $1,000 Land tax estimate $1,475 Total annual cost $54,377 New Build Cash Flow Before Tax Item Amount Rental income $31,200 Less holding costs -$54,377 Pre-tax cash shortfall -$23,177 p.a. Weekly shortfall -$446 per week Before tax, the new build is actually worse. Why? Because it rents for $100 per week less. That is $5,200 less rent per year. The slightly lower maintenance and land tax estimate does not fully offset the weaker rental income. So before tax, the new build is approximately: $2,724 per year worse than the established property This is where the conversation gets interesting. Tax Changes the Story The major advantage of the new build is that it may still qualify for negative gearing. The 2026 Budget reform package is centred on limiting negative gearing for residential property to new builds, while changing capital gains tax treatment more broadly. That means the new build may still allow the investor to offset rental losses against salary income, subject to the final rules and personal circumstances. Scenario A: New Build Without Depreciation Item Amount Cash loss -$23,177 Approx. tax benefit at 32% +$7,417 After-tax cash shortfall -$15,760 p.a. Weekly after-tax shortfall -$303 per week Compared with the established property, the new build could be around: $4,693 per year better in after-tax cash flow About $90 per week better This can be significant for an investor earning $130,000. Scenario B: New Build With Depreciation Brand-new properties may also provide depreciation benefits. Let’s use a simple example of $10,000 per year in depreciation. Depreciation is not a cash expense. You do not physically pay it each year. But it may increase the taxable loss, which may improve the investor’s tax position. Item Amount Cash loss -$23,177 Depreciation allowance -$10,000 Taxable loss -$33,177 Approx. tax benefit at 32% +$10,616 After-tax cash shortfall -$12,561 p.a. Weekly after-tax shortfall -$242 per week Now the new build looks much better from a holding-cost perspective. Compared with the established property, the new build may be around: $7,892 per year better in after-tax cash flow About $152 per week better This is the number many project marketers and property spruikers will focus on. To be fair, they are not completely wrong. The new build may genuinely be easier to hold. But that does not automatically mean it is the better investment. What About the Resale Value? This is where most investors do not think deeply enough — and it is almost never properly factored into the purchase decision. The picture becomes even murkier when you start considering the future resale value of the property. Under the old system, many investors did not need to worry too much about whether a property was established or brand new from a resale perspective. Or at least, the difference was not as significant when comparing similar property types. An investor buying an established property and an investor buying a new build could often access similar tax treatment, so the resale gap was less obvious. Under the new Budget 2026 changes, buying a new property is a bit like buying a new car. The new property can only be new once. The tax benefit attached to a new property may disappear the moment it is resold. Once the first owner sells it, the property becomes just another established property in the eyes of the next buyer. At that point, future buyers will compare it against other established properties in the market. And when that happens, the property with the stronger fundamentals will win. That means location, land value, scarcity, build quality, rental demand, owner-occupier appeal, school zones, transport, amenities and resale depth become critical. The property with better fundamentals is more attractive, and thus tends to fetch better resale price. In simple terms: A new build may win on tax when you buy it. But the better property wins when you sell it. The Real Question: Cash Flow or Capital Growth? Here is where investors need to have a goal. What do you want from the property? How does the property fit into your portfolio and goals? The new build may save the investor roughly $5,000 to $8,000 per year in after-tax cash flow. But what happens if the established inner-metro property grows faster (which it usually is)? On a $900,000 property, a small difference in annual capital growth can completely wipe out the new build’s cash-flow advantage. Extra capital growth from established property Dollar difference 1% p.a. stronger growth $9,000 per year 2% p.a. stronger growth $18,000 per year 3% p.a. stronger growth $27,000 per year This is the part investors often miss. A new build might save you $7,000 a year in tax-adjusted holding cost. But if it underperforms by 1% per year in capital growth, the established property may still come out ahead. And in Melbourne, a 1% growth gap between a scarce, well-located established property and an outer-ring new build is not hard to imagine. It is available from data sources. In fact, it is often the difference between buying a real asset and buying a glossy brochure with a floor plan. In Summary: Established vs New Builds in Melbourne Category Established Inner-Metro Property Brand-New Outer-Ring Property Purchase price $900,000 $900,000 Investor income $130,000 p.a. $130,000 p.a. Loan amount $720,000 $720,000 Interest rate assumption 6.25% interest-only 6.25% interest-only Weekly rent $700 $600 Annual rent $36,400 $31,200 Annual interest cost $45,000 $45,000 Pre-tax cash shortfall -$20,453 -$23,177 Negative gearing benefit Limited/quarantined under new rules Likely available Depreciation benefit Lower Higher After-tax shortfall, no depreciation -$20,453 -$15,760 After-tax shortfall, with depreciation Not modelled -$12,561 Cash-flow winner New build Likely capital-growth winner Established 10 Year Scenario This is where things can get exciting. Give, most property owners hold on to a property for about 10 years, let's look at what happen in 10 years: 10-Year Wealth Impact Example Let’s assume the new build saves the investor around $7,000 per year in after-tax cash flow. That gives the new build a $70,000 cash-flow advantage over 10 years. But if the established property grows faster, the story changes. Growth Difference in Favour of Established Extra Capital Growth Over 10 Years New Build Cash-Flow Advantage Net Position 0.5% p.a. better Approx. $45,000 $70,000 New build ahead by $25,000 1.0% p.a. better Approx. $90,000 $70,000 Established ahead by $20,000 1.5% p.a. better Approx. $135,000 $70,000 Established ahead by $65,000 2.0% p.a. better Approx. $180,000 $70,000 Established ahead by $110,000 This table is deliberately simple. It does not compound growth, and it does not include selling costs, tax on sale or loan principal changes. But it makes the point clearly. If the established property grows only 1% per year faster, it may overtake the new build’s tax and cash-flow advantage over a long-term hold. Why Established Properties Can Still Win Established properties can still be excellent investments when they have the right fundamentals. The key advantages are: 1. Better land component In Melbourne, long-term growth is often driven by land value. A well-located established townhouse, villa unit or house may have a stronger land-to-asset ratio than a brand-new apartment or outer-ring townhouse. Investors should always remember: Land appreciates. Buildings depreciate. 2. Stronger tenant demand The example shows this clearly. The established inner-metro property rents for $700 per week. The brand-new outer-ring property rents for $600 per week (and it is a very optimistic estimate). Not many outer ring tenants can afford to lease a $900k house. That $100 weekly gap tells us something important: location still matters. Tenants pay for access, convenience, schools, transport, jobs, lifestyle and amenity. They do not just pay for stone benchtops. Inner ring properties have them all. Outer ring properties are usually in the early stages of development, thus, the lesser amenities. 3. Better resale depth Established inner and middle-ring locations often have deeper resale demand. You are not only selling to investors. You may be selling to: first home buyers young families downsizers professionals school-zone buyers owner-occupiers wanting location That owner-occupier demand can support prices during softer markets. Outer-ring new builds often compete with other new builds. When you sell a five-year-old property, your competition may be a brand-new version nearby with better incentives. That is not a fun auction room. 4. Less developer premium Many new builds are sold with the tax benefit baked into the price. In plain English, the developer may already have captured part (if not all) of your future tax advantage in the purchase price. The marketing spew says “tax saving”. The contract price says “thank you very much”. Why New Builds Can Still Make Sense To be clear, this is not an anti-new-build argument. New builds can make sense. But they must be qualified and bought carefully. A new build may be suitable if: the investor needs better after-tax cash flow serviceability is tight depreciation benefits are meaningful the property is genuinely scarce the suburb has strong population, income and infrastructure drivers the land component is reasonable the build quality is strong the price is not inflated by developer margin the resale market is not flooded with similar stock A new build should not be bought just because it is new. It should be bought because it is a good investment that happens to be new. It is a Big difference. Side-by-Side Summary Item Established Inner Metro New Build Outer Ring Purchase price $900,000 $900,000 Rent $700/week $600/week Annual rent $36,400 $31,200 Pre-tax cash shortfall -$20,453 -$23,177 Negative gearing benefit Likely limited/quarantined under new rules Likely available Depreciation Lower Higher After-tax shortfall, no depreciation Around -$20,453 Around -$15,760 After-tax shortfall, with depreciation Not modelled Around -$12,561 Cash-flow winner New build Likely land/scarcity winner Established Likely long-term growth winner Depends on asset quality, but often established Our Melbourne Buyer’s Advocate View For a $130,000 income earner buying a $900,000 Melbourne investment property, the new build may be easier to hold after tax. While this may be the honest answer, the established property is still usually the better long-term asset, if you can afford the holding costs. Established properties in good locations, tends to: appreciate faster attract better rent higher rental growth attract better tenants The key question is this: Will the established inner-metro property outperform the new outer-ring new build by more than roughly 1% per year? If the answer is yes, then the established property may still be the better investment, even with weaker tax treatment. If the answer is no, or if the investor cannot handle the holding cost, then a carefully selected new build may make more sense. This is why investors should not blindly follow tax policy. Tax policy changes. Property fundamentals remain. My Practical Recommendation For a $900,000 Melbourne investment budget, I would generally rank the options this way: 1. Quality established townhouse, villa unit or house in a proven suburb This is still my preferred option where the investor can handle the cash flow. Look for land value, scarcity, owner-occupier demand, transport, schools, low supply and strong resale depth. 2. Quality new or near-new townhouse in a strong middle-ring suburb This can work if the price is fair and the location is not compromised. The problem is not “new”. The problem is overpriced, mass-produced, investor-targeted stock. 3. Outer-ring new build only if the numbers and fundamentals genuinely stack up Do not buy it just because the tax treatment is better. The property still needs to perform without the tax sugar hit. 4. Most new apartments and generic house-and-land packages Be very careful. Many look good in a depreciation schedule and ordinary in the real market. Final Verdict For this example: Established inner metro at $700/week gives better rent and likely stronger land-value fundamentals. New outer-ring at $600/week gives better after-tax cash flow, especially if depreciation is available. The new build may save around $5,000 to $8,000 per year in after-tax holding cost. But the established property only needs to outperform by about 1% per year in capital growth to potentially offset that benefit, and this is 1% target is very achieveable. Typical capital growth in Melbourne hovers between 4-10%, depending on location and property. So the answer is not simply: “Buy new because negative gearing.” That is lazy advice. The better answer is: Buy the better asset. Then model the tax, with your income tax bracket. For investors who can handle the holding cost, a quality established Melbourne property is usually still the stronger long-term play. For investors with tighter serviceability or cash flow, a carefully selected new build can make sense — but only if the property is genuinely good, not just tax-friendly. Because in property investing, the tax benefit might help you survive the hold. But the asset quality determines whether the investment was worth holding in the first place. Decision Matrix Should you buy an Established or New Property? Investor Priority Better Fit Why Lowest holding cost New build Negative gearing and depreciation may improve after-tax cash flow Stronger rent Established In this example, the established property rents for $100/week more Better land value Established Usually stronger land component in established areas Lower maintenance New build Newer property should have fewer short-term repairs Better tax benefits New build More favourable under the proposed negative gearing changes Better long-term scarcity Established Established inner/middle-ring locations often have deeper demand Easier tenant appeal Depends New build has modern finishes; established may have better location Better resale depth Established More likely to attract owner-occupiers, not just investors Lower risk of developer premium Established New builds can include pricing premiums and marketing margins Best for tight serviceability New build Better after-tax cash flow may help the investor hold the asset FAQ Established vs New Builds Is an established property still worth buying after the negative gearing changes? Yes, it can be. Established properties may have weaker tax treatment under the proposed rules, but they can still offer better land value, rent, scarcity and capital growth potential. The key is whether the property can outperform the new-build alternative enough to justify the extra holding cost. Are new builds better for investors now? New builds may be better from a tax and cash-flow perspective, especially if negative gearing and depreciation benefits are available. But that does not automatically make them better investments. A poor-quality new build in a weak location can still underperform badly. What matters more: tax savings or capital growth? For long-term investors, capital growth usually matters more. A tax saving of $5,000 to $8,000 per year can be useful, but a 1% difference in capital growth on a $900,000 property is worth $9,000 per year. Should I buy a new apartment for depreciation? Usually, be careful. Depreciation can improve cash flow, but apartments often have lower land content, higher owners corporation costs, and more resale competition. Depreciation should be a bonus, not the main reason to buy. What is the best $900k investment property in Melbourne? There is no single answer, but a quality established townhouse, villa unit or modest house in a strong suburb is often a better long-term investment than a generic new build in an oversupplied outer-ring estate. The right property depends on cash flow, borrowing capacity, location, land value and the investor’s goals.

In an environment where interest rates and cost of living expenses are high and rising, more and more property owners are finding themselves struggling to service the mortgage repayments. While some lucky property owners have the option of tightening their belts and cutting back on expenses to keep mortgage repayments up to date, others may find themselves reacting too slowly or inadequately, leading to precarious situations. If you have a mortgage, having the bank or lender repossess your property is one such situations where no property owners want to be in. So, what happens when you are late on payments and when you receive a call or notice from your bank or lender, indicating your property will be repossessed? This blog article will help property owners understand what goes on during the repossession process, and help you explore ways to avoid being caught in one. This article is a broad representation of a typical repossession process used by the Australian banks and lenders, and it is specific to the Australian property market. And as usual, each of bank or lender will have different variations of this process. What is a Mortgagee in Possession? A Mortgagee in Possession, in Australia, refers to the situation where the lender, typically a bank, financial institution or private financier / financer, takes possession of the property and / or collateral, due to the borrower's inability to meet their mortgage repayment commitments. Essentially, it means the property will be repossessed by the lender because the borrower has defaulted on their mortgage obligations. This Mortgagee in Possession process is initiated by the lender to recover the outstanding debt owed by the borrower, after several missed repayments, and over an extended period of time. In Australia, when the lender decides to initiate repossession orders, it usually means the lender no longer believes the borrower will be able to resolve the situation. This also means the borrower might have a debt so high that the lender are unable to recover without selling the property or other collaterals. It can also mean the lender and borrower are unable to work collaboratively to avoid a repossession situation. What Happens Before a Property is Repossessed? Before a repossession is initiated, the lender will usually try to be fair and work with you to define a plan for you to catch up with the arrears. This could be restructuring the mortgage, agreeing to give you a pause in repayments (repayment holiday), etc. It is in your best interest to work with the lender to either resolve the outstanding debt or define a way forward with the lender. If this fails, or if the borrower could not agree to a way forward, the lender would be left with no choice but to initiate the repossession process. What is the Property Repossession Process in Australia? When all else fail, and the lender decides to proceed with the repossession, this is what usually happens. As usual, different lenders and different circumstances would have a slightly different process. But here's what typically happens when a property is repossessed: Notice of Default: The lender issues a Notice of Default to the borrower, informing them that they are in breach of their mortgage agreement due to missed repayments, etc. They will encourage the borrower to work with the lender to arrive at a solution agreeable to both parties. Attempted Resolution: The lender will usually attempt to work with the borrower to find a solution to the delinquency, such as renegotiating the terms of the loan or offering a repayment plan. Most lenders will usually try to work with the borrower before sending a notice of default. Legal Proceedings: If the borrower fails to rectify the default or comes to an agreeable solution, the lender may commence legal proceedings to repossess the property. This involves obtaining a court order for repossession. Repossession: Once the court grants the repossession order, the lender takes possession of the property. This may involve physically evicting the occupants, if necessary. And you may come home one day with the locked changed or the doors sealed. If it is a rental property, the renters would usually be allowed to complete the lease term, within a reasonable time frame, or they may also be evicted after serving a notice of eviction. Sale of the Property: After repossessing the property, the lender typically seeks to sell the property, in order to recover the outstanding debt owed by the borrower. Depending on the lender, situation and the property, the property may be sold through auction, private sale, or other means. Auction is usually the preferred method, as it is usually seen by the legal team as the most transparent and least biased. Debt Settlement: If the proceeds from the sale of the property do not cover the full amount owed by the borrower (including the outstanding mortgage balance, interests, late fees, penalties and any debt recovery, management, legal and associated costs, etc), the borrower is usually still liable for the remaining debt. In some cases, the lender may pursue further legal action to recover this debt, including seizing any other securities, properties, etc. Lenders Mortgage Insurance (LMI): If the borrowers have lenders mortgage insurance, the lenders will recover the shortfall from the insurer. But that does not mean the borrower get off scot free. The LMI insurer can and do, in turn recover this shortfall from the borrower. The LMI is not the get out of jail free card. It is buying time to repay the mortgage. Surplus Funds: If the sale of the property generates more proceeds than the total debt by the borrower, the excess funds (surplus) may be returned to the borrower, depending on the specific circumstances and applicable laws. Bankruptcy: If the sales did not cover the mortgage and cost of repossession, and you are unable to find funds to cover the outstanding debts or reach an agreement to repay the debts, the creditors may be forced to apply to make you bankrupt. How long does the Repossession Process take? In Australia, the repossession process usually takes between 2 to 3 years. IE, most mortgagee in possession properties will hit the buyers market after a lengthy 2-year process. It's important to note that the process and duration of repossession and sale of a property can vary significantly depending on factors such as the terms of the lenders' internal processes, lenders' mortgage agreement, state laws, negotiations between lender and borrower, lender's and the borrower's circumstances, etc Does Bankruptcy End Your Debt? Contrary to popular belief, being bankrupt DOES NOT wipe your debt. You are still liable to repay your debts. Your income, salary, other properties and possessions of value may also be garnished, force sold and the returns distributed to your debtors. Your name will also be recorded permanently in the National Personal Insolvency Index (NPII), and you will also face travel restrictions, inability to run a business, difficulty obtaining future credit, insurance, etc. You may also be excluded from certain employment. Your debt is only wiped after the bankruptcy ends, which can vary from 3 years + 1 day up to 8 years. The credit scar, however, can stay with you forever. The NPII record is searchable by anyone. How Can You Avoid a Mortgagee in Possession (Repossession) Situation? To avoid ending up in a mortgagee in possession situation, you need to go back to investment and money making basics. By being prudent with your spending and borrowing, you can usually avoid ending up in such a difficult situation. Mortgagee in Possession situations almost never happen overnight. The repossession process is lengthy and expensive. It can cost the lender tens of thousands to hundreds of thousands of dollars. This cost is usually recovered by adding to your total debt balance. Repossessing the property is usually the last stage of managing a debt in default, and it is a stage where no mortgagee wants to get to. The lender is only keen to recover the debt, and they will work with you to recover the debt. As a borrower, here are a few very simple and basic concepts to prevent yourself from getting into the repossession situation: 1. Avoid Overextending yourself Never stretch yourself beyond your means. Assess your financial capacity meticulously. While a mortgage broker may suggest you can borrow a certain amount based on your income and expenses, you still have to responsibility to borrow prudently. Before committing to any further debts, ask yourself essential questions: Do you need to buy a property worth that amount? Can you comfortably manage the monthly mortgage payments? Is investing that amount in property the best choice for your financial situation? What if you lost part or all of your income? Can you still comfortably afford the mortgage? As much as mortgage brokers tries to help you find the best mortgage, no mortgage brokers or financial experts know you better than you do. Always remember, mortgage brokers earn commissions based on the amount you borrow, so some unscrupulous mortgage brokers will push you to borrow more. Be cautious and prioritize your own financial stability. 2. Be wary of Free Property Investment Seminars by Spruikers We get it. Free property investment advice sounds like a steal. But let’s be honest: we know there is no such thing as a free lunch. We’ve sat in rooms where smiling “property gurus” hand out coffee, snack and promises, only to push you towards developer-funded property "deals" that line their pockets, not yours. They’re banking on your naiveness, excitement (and your budget) to drive their commissions. Often, it’s the very property investors and buyers who cannot afford a loss who get caught in these traps. And this brings us to the next point. 3. Avoid Negatively Geared Properties Negatively geared properties involve incurring losses with the hope of future profits. It effectively means you're losing money, hoping to make money in future. This strategy is usually suitable for wealthy investors who can absorb losses without significant impact to their lifestyle. Unfortunately, spruikers and fake property investment "strategists" and real estate project marketers often use such free property investment seminars to target individuals, selling massively negatively geared properties, promising "potential future growth". While negative gearing may sound good, it should be used with caution. Negative gearing can bite you very hard during a property or economic downturn and when interest rates are rising. Before diving into negatively geared investments, consider whether you can afford the risk: Can you afford to potentially lose the property? Assess the implications of high-interest rates on such investments. It's concerning that some individuals explore negative gearing when interest rates are high, without fully understanding the implications. Negative gearing is effectively losing more money to save on taxes. It's akin to losing a dollar to save 30 cents – a scenario nobody should desire. In the Australian investment environment, if you like losing $1, to save 30 cents, let us know. I'll send you our bank details. For every dollar you deposit, I'll return 30 cents to you. Okay... Let's make it 35 cents, for every dollar you send us. 4. Chase Quality not Quantity Choose your investment properly. Go for quality, not quantity. There is no need to chase X number of investment properties. The idea of more investment properties equates to greater wealth is used by property spruikers for marketing purposes. The reason? They earn commission for every property you buy. Do they really own those property? No. As long as they have a mortgage on them, the bank has control of it. 5. You Only Need 3 Properties to Retire Planning for retirement? Don't be suckled in by advisors telling you need 100 properties to retire. You do not need hundreds of houses to retire. You only need 3 good, strategically selected ones to retire. This article explains and shows what it takes for you to retire. By being careful with the properties you select, you can be a step ahead of everyone else, without overextending yourself, and stay out of debt. Bottom line: Stay within your means, dodge the hype, and buy smart. By adhering to these principles and making informed decisions, you can safeguard yourself from the risks associated with Mortgagee in Possession situations and ensure a more secure financial future. What Should You Do, if You Think Your Property May Be Repossessed? If you're concerned that your property may be repossessed due to financial strain, it's essential to take proactive steps to mitigate the situation:: Review your expenses: Conduct a thorough review of your expenses to identify areas where you can cut back. Look for non-essential expenses that can be eliminated or reduced to free up more funds for mortgage repayments.. Increase your income: Consider ways to boost your income, such as taking on a second job or pursuing opportunities for higher-paying employment. Generating additional income can help alleviate financial pressure and improve your ability to meet mortgage obligations Assess Troublesome Properties: Evaluate which properties in your portfolio are causing the most financial strain. Identifying these properties allows you to prioritise them for action, whether through restructuring loans, refinancing, or selling the property. Explore Refinancing: It might be too late, as the banks would have tightened their lending, so, you might not be able to refinance. But it is worth a try. If you're using a mortgage broker though, be wary of the information you share with them. Shady as they may be, most mortgage brokers have connections looking for cheap properties. They will be low balling your properties. Use someone you trust. We have a few honest brokers with integrity. Let us know if you need one. Talk to the Bank or Lender: This might be counter-intuitive, but remember, the banks are not in the real estate business. They want their money back and they will be keen to work with you to try to recover what you owe them. Explain your situation to them, and if you are sincere and cooperative, they might be able to work out a payment option with you. They may allow you to delay your payments, or restructure your mortgage to lower your monthly payments, or allow you to try to sell the property before they do. Explore Selling Your Property: If you're struggling to maintain multiple properties, consider selling the properties that are causing the most financial stress. OR selling the properties with the most equity in them. Liquidating assets can help alleviate financial burdens and prevent / slow further escalation of debt. There is no single best solution, but if you would like to have a chat with us, we can help you assess your best option. Seek Professional Assistance: Reach out to professionals such as buyers advocates and property investment advisors like us, or financial advisors who can provide guidance and support during this challenging time. Consult with financial advisors or property experts to explore viable solutions and navigate the repossession process effectively. Be Proactive: This may be a stressful moment for you, but it is not the time to be emotional. Do not delay seeking assistance if you anticipate repossession. Acting promptly allows you to explore options and take necessary steps to protect your financial interests before the situation escalates further. You need to avoid getting yourself into a repossession situation. Be Proactive. Act before the bank does. What Should You do to Avoid the Mortgagee in Possession Situation? Borrowers facing financial difficulties should seek advice from a financial counselor or legal professional to understand their rights and options. Consider selling some or all properties, before the bank does. If you are selling, selling through a real estate sales agent is NOT the only way to sell your property. Consider using effective, low-cost options, such as selling it yourself, to your friends and relatives. Also explore our vendor advocacy options, where we can either match a buyer for your property, at no cost to you. We help to find the best agent to sell your property, plus keeping them honest, saving you from paying excessive sales commissions, or help you find the best sales agent and keep them honest. Can You Negotiate with the Mortgagee to Avoid Repossession? Yes and no. It depends on how far you are behind in repayments, how cooperative you had been with your Mortgagee, your relationship with the Mortgagee and your personal circumstances. If you have been proactive, chances are, you can avoid getting yourself in this sticky situation. And if you do find yourself in a potential repossession situation, your mortgagee is more likely to work with you for a mutually beneficial situation. But if you (or your mortgage broker) had been dodgy and lying to the mortgagee, you can be sure they will be the least cooperative when you needed them. Always be proactive, upfront and honest with your mortgagee. How can You Negotiate with Your Mortgagee? If you are early in the process and your mortgagee allows it, here are some tips to negotiate with your lender. Things You Should Remember When You Negotiate With the Mortgagee There is one fundamental thing you need to remember when you negotiate with the lender. The business model of the major banks and lenders is not about owning properties or selling properties. They lend you the money for your properties on the premise that you can repay the principal plus the agreed interests. Thus, within reasons, banks will try their best to negotiate, and accommodate your needs, so they can avoid having to force sell your properties. If all things failed, and they have to force sell your properties, it means they believe it is too late, and they do not see you recovering from your debts. This also means they will not be the happiest person. It is a business transaction to them, with no emotions attached. If they have to take possession or your property, you can be sure they will send their best team to do it, in the shortest time possible and with the highest possible fees, interest rates and charges. Always remember, interests on your debt do not stop accruing until you pay it off or until they make you bankrupt. What Happens After Your Property is Repossessed and Sold? After your property is repossessed and sold, the best you can hope is for the sale to clear all of your debt. This gives you the opportunity to start afresh, sooner. If you are in a negative equity situation, you're in big trouble. Your property will be force sold and you'll be left with the balance of the debt. Thus, low deposit schemes, and high yield properties (which usually means very low or negative growth), should be avoided where possible. After Selling, Can You Ask for Early Release of Deposit to Pay Off Your Debts? In some states, such as Victoria, you, as the seller might be able to ask for an early release of the deposit after selling your property. In Victoria, the Section 27 for allows the sellers to make this request. However, as a person with debts in default, trying to ask for an early release of deposit is a tricky question. The answer is yes and no. There is no straight forward answers. It depends on how cooperative you had been, how honest and upfront you had been, and the reason / purpose for asking an early release of your deposit. This request needs inputs from the mortgagee and the buyer's conveyancer / solicitor. The mortgagee/s will include information such as: Amount you owe, and at what interest rates Are you in default (ie, have you missed payments) Mortgagee's inputs (advice) to the buyer's decision process. When the buyer's conveyancer or solicitor realise the debt is in default, chances are, they will reject the early release of money. As the buyer will be assuming the responsibility of losing the deposit, if the settlement does not proceed. That said, money from the sale of your property has to go towards paying off your mortgage and debt. So, the money technically, does not belong to you. It belongs to the mortgagee. Any money that is released early has to go off paying the secured debt as a priority. So, while you might hope you can use the deposit to relieve your debt situation, you might realise you might not see a cent of it. However, if you had been upfront and honest dealing with your mortgagee, you would have built up enough trust with the mortgagee, the mortgagee might let you access some of the funds to pay off your other debts, if they are confident there would have sufficient funds remaining in the proceeds of the sale to cover your debts. This is why, if you find yourself struggling to service your debt, it is in your best interest to to be honest with your mortgagee. Mortgagees will usually dislike borrowers who are not honest with them. How Long Does It Take to Repossess Your Property? The repossession process may take up to 2-3 years of more, and your debt does not stop accruing interests, even when you no longer have access to your property. You are usually liable for any interest accrued until your debt is completely paid off. If your debt still remains after the property is sold, the court may grant the mortgagee the right to garnish any other assets, monies from your savings, and / or income or salary. Mortgagee will usually not stop, until they recover every cent you owe or until they make you bankrupt. How Can Buyers Advocates Help You Avoid Repossession? Buyers Advocates can play a crucial role in helping you avoid repossession by providing timely assistance and access to potential buyers for your property: Access to a Pool of Ready Buyers: Buyers Advocates have established networks and connections with qualified buyers, ready to buy properties. By reaching out to them, you gain access to a pool of interested buyers who are ready to purchase your property. Swift Action and Response: If you suspect that your property may be at risk of repossession, it is essential to act swiftly. Buyers Advocates can provide immediate assistance and support, offering guidance on the best course of action to protect your property interests. Opportunity to Sell Before Repossession: By engaging with Buyers Advocates early in the process, you have the opportunity to explore selling your property before repossession proceedings begin. This proactive approach can help you avoid the negative consequences associated with repossession. Potential Cost Savings: Selling your property through Buyers Advocates may result in significant cost savings compared to traditional real estate transactions. Because these buyers have already paid the buyers advocates a service fee, they will not charge you any sales commissions. With no commissions involved and access to qualified buyers, you can usually sell your property fast and saving tens od thousands of dollars in commissions, fees and expenses. Expert Guidance and Support: Genuine Independent Buyers Advocates offer expert guidance and support throughout the selling process, helping you navigate complexities and make informed decisions. Their industry knowledge and experience can be invaluable in securing a favorable outcome. SPEED Prevents Further Financial Strain: Debt interests do not stop accruing until the debt is paid off. By selling your property fast before repossession occurs, you can prevent further financial strain and minimize the impact on your credit rating and financial stability. Buyers Advocates can help expedite the sale process, ensuring a smooth transition and resolution. Timely Intervention: Seeking assistance from Buyers Advocates at the earliest indication of financial difficulty allows for timely intervention and mitigation of potential risks. Their proactive approach can help you address challenges effectively and protect your long-term financial interests. If you are in a no-return situation, the earlier you sell, the less interest and debt recovery costs you will owe your bank/lenders/creditors. Talk to us Before the Bank Repossess Your Property We hope our readers do not find themselves in such a situation. But if you do, talk to us. Our Buyers Advocates will discuss how we can offer proactive and effective solutions for avoiding repossession by facilitating the sale of your property to qualified and ready buyers. Our expertise, network, and timely intervention can make a significant difference in preserving your financial well-being and securing a positive outcome for you. We have a constant pool of buyers who are ready to buy your properties. If your property meets the criteria our buyers are looking for and they buy it, you can save yourself over $30k-$100k or more in sales commissions and other expenses. This is quite a substantial savings, but you will need to come to us before the bank initiates their debt management and repossession process. Disclaimer: Information provided here and anywhere in our website is general information only, and should not be taken as financial or legal advice. It does not take your personal circumstances, needs and requirements, etc, into consideration. You should always seek formal legal and financial advice for solutions to suit your individual circumstances.

The Real Comparison Between Victoria, Queensland and WA Investors love asking: “Should I buy in Melbourne, Queensland or Western Australia?” It is a Fair question. But the wrong answer is usually the loudest one. Some people will say, “Perth is booming, buy Perth.” Others will say, “Brisbane has the Olympics, buy Brisbane.” Melbourne loyalists will say, “Melbourne is undervalued, buy Melbourne.” The truth is more useful than the hype: Melbourne is the value-and-recovery market. Queensland is the balanced growth-and-lifestyle market. Western Australia is the momentum-and-yield market. Each can work. Each can burn you. The winner depends on your strategy, tax position, borrowing power, risk tolerance and the specific property you buy. In 2026, with higher interest rates, new tax changes and a softer national outlook, investors need to stop buying headlines and start buying fundamentals. The 2026 Investment Landscape Has Changed The biggest mistake investors can make now is using old rules for a new market. The RBA cash rate was lifted to 4.35% in May 2026, after increases in February and March. That has reduced borrowing capacity, pushed repayment pressure higher and made investors more sensitive to cash flow. On top of that, the 2026 Federal Budget introduced major tax reforms. Negative gearing will be limited to new builds from 1 July 2027, while rental losses on established residential investment properties bought after 7:30pm AEST on 12 May 2026 will generally be quarantined rather than offset against wages or salary. The CGT reforms will apply to gains accruing after 1 July 2027. That changes the investor equation. Previously, some investors could tolerate poor cash flow because negative gearing softened the pain. Now, especially for established property bought after Budget night, investors need to ask a much harder question: Does this property work under the new negative gearing and CGT treatment? That one question changes how Melbourne, Queensland and WA should be compared. Melbourne: The Value and Recovery Play. Melbourne has been the underperformer. Compared with Brisbane, Perth and Adelaide, Melbourne’s price growth has been weak over recent years. For many investors, Victoria has felt too hard: higher land tax, weaker sentiment, slower capital growth and more political risk. However, the good news is that weak sentiment can create opportunity. Melbourne remains one of Australia’s deepest property markets. Melbourne is the most populous capital city in Australia. Plus, major employment hubs, global universities, medical precincts, established transport networks, strong migration appeal and broad owner-occupier demand. It is not a one-industry town. It has economic breadth and depth. But Melbourne is not a “buy anything” market. Cotality’s April 2026 Home Value Index showed softer conditions in Melbourne, with values retreating, softer auction clearance rates and more advertised supply giving buyers more choice. That means buyers have more room to negotiate, but also more room to make mistakes. The opportunity in Melbourne is not in generic investor stock. It is in quality assets that nervous vendors may now be willing to sell at fair value. And these are: established family homes on good land, scarce villas or townhouses in tightly held suburbs, properties near strong schools, transport and employment, middle-ring suburbs with genuine owner-occupier depth, locations where supply is limited and long-term demand is proven. Melbourne suits investors who are patient, analytical and willing to buy against sentiment. If you are an investor after a quick punt, stay away. Possibility of you getting burnt is high. It is not the market for people who need instant gratification. If you want fireworks in the next six months, Melbourne may feel like watching paint dry in winter. But for investors who care about long-term asset quality, Melbourne is still very much alive. Queensland: The Balanced Growth and Lifestyle Market Queensland has had a powerful run. Brisbane and South East Queensland benefited from interstate migration, lifestyle demand, relative affordability, tight rental markets and improving economic confidence. Compared with Melbourne, Queensland has offered stronger recent growth and generally better rental yields. KPMG’s 2026 Residential Property Market Outlook expected Brisbane house prices to grow strongly in 2026, with Brisbane forecast at around double-digit growth in that earlier outlook. But investors need to be careful. The easy money in many Queensland markets has already been made. Buying after a strong run is not necessarily wrong, but it requires discipline. You need to know whether you are buying future growth or paying for yesterday’s growth. Queensland also has very location-specific risks. Flood risk matters. Insurance matters. Building quality matters. Local supply matters. Some outer corridors and townhouse-heavy pockets can look affordable but have weaker scarcity. Some coastal markets are lifestyle-driven and can become volatile if affordability gets stretched. Queensland’s strength is that it offers a cleaner balance than Melbourne for many investors: better rental yield, strong population growth, good lifestyle appeal, less land tax pain than Victoria for many individual investors, and broad demand from both renters and owner-occupiers. But do not confuse “Queensland is strong” with “every Queensland property is good”. That is how investors buy a flood-prone, investor-heavy townhouse and then call it a “growth asset” because someone mentioned the Olympics. Western Australia: The Momentum and Yield Market WA, especially Perth, has been the strongest momentum story. Perth has offered strong rental pressure, lower vacancy, better affordability compared with the east coast, and stronger yields. KPMG’s January 2026 outlook forecast Perth house prices to rise by almost 13% over 2026, the strongest among capital cities in that report. From a cash-flow perspective, WA has been hard to ignore. For investors hit by higher rates and tax changes, stronger yield matters. If negative gearing benefits are being reduced for established properties, investors naturally become more interested in markets where the property can carry itself better. This is where Perth has an advantage over Melbourne. But WA has its own risk. Perth has a history of sharper property cycles. It can run hard, then go sideways for long periods. The WA economy has more exposure to resources, mining sentiment and commodity cycles than Melbourne or Brisbane. That does not make Perth bad. It means the entry point matters. Investors buying WA now need to be careful not to buy late in the cycle simply because the recent numbers look good. A market can be strong and still be dangerous if you overpay. Good WA investing requires: strong local knowledge, careful suburb selection, avoidance of inferior stock, understanding of employment drivers, and a realistic view of whether current rent growth is sustainable. WA is attractive for yield and momentum. But momentum is not a moat. What about the Broader Regional Victorian Market? The regional Victorian market is an interesting one. Regional Victorian market had been very resilient in recent year, despite the perceived gloom in Melbourne and higher land tax. Major regional cities had been experiencing consistent growth of between 15-25 annually. Yes, we've been saying, Melbourne is good, but regional Victoria can be better for you. Rental Market Comparison Rental tightness is one of the biggest reasons Queensland and WA have attracted investor attention. SQM Research reported Australia’s national vacancy rate rose to 1.2% in April 2026, still very tight by historical standards, with national asking rents up 7.3% over the year. Cotality also noted that every capital city was recording a vacancy rate below 2%, with Perth among the tightest markets in March 2026. In simple terms: WA generally wins on yield. Queensland usually offers better yield than Melbourne. Melbourne often has weaker cash flow but stronger long-term depth in selected quality locations. Regional Victoria usually offers better yield than Melbourne. This is where strategy matters. If an investor needs stronger holding income, Melbourne can be hard work. Land tax, rates, insurance, maintenance and interest costs can eat into returns quickly. Hwoever, if an investor has strong income, long-term patience and wants quality land in a deeper market, Melbourne may still be attractive. Different investor, different outcome. Tax and Holding Cost Comparison This is where Victoria takes a beating. Victoria’s property taxes have made investors nervous. Land tax has become a major complaint, especially for investors holding multiple properties or properties with higher land value. Queensland and WA are not tax-free paradises, but for many investors they feel more manageable than Victoria. This has pushed some investor demand away from Melbourne and into Brisbane, Perth and regional markets. However, there is a contrarian angle. When investors abandon a market, prices can soften. When prices soften, disciplined buyers can negotiate. When everyone hates a market, that market can start producing value. That does not mean investors should blindly buy Victoria. It means the best opportunities often appear when sentiment is poor. Melbourne’s tax pain is real. But so is its long-term potential. The smart investor should consider both. Capital Growth Outlook: Who Wins? At the start of 2026, many forecasts were still positive. KPMG expected national house values to rise 7.7% and national unit values to rise 7.1% in 2026, supported by tight supply and strong rental dynamics. But with the recent Budget 2026 taxation changes, it has become more cautious. ANZ expects capital city prices to grow only 2.8% in 2026 and 2.1% in 2027, with Sydney and Melbourne expected to underperform in 2026 and Brisbane, Perth and Adelaide likely to lose momentum in 2027 after strong previous growth. The Budget 2026 also tried to shift investor demands to a certain market segment. That tells us something important: The market is shifting from broad growth to selective growth. WA may still lead on momentum. Queensland may still offer the best balance. Melbourne may be the contrarian value play. But as with any investments, none of these markets should be bought blindly. A good property in a weaker market can outperform a bad property in a stronger market. Investors forget that because charts are easier to read than streets. So Which Market Is Best? Ranking isn't straightforward. But if you must have it, here is the honest ranking. Best short-term momentum: Western Australia WA, especially Perth, has the strongest current momentum and better rental yields. It suits investors who want cash-flow support and are comfortable with a more cyclical market. Best balanced market: Queensland Queensland offers a good mix of population growth, rental demand and lifestyle appeal. It suits investors who want a balance between yield and growth, but suburb selection is critical. Best contrarian value: Melbourne Melbourne is softer, more negotiable and unloved by many investors. That can create opportunity for buyers who are focused on long-term asset quality rather than short-term hype. Best long-term depth: Melbourne Melbourne’s economy, population base, education sector, employment diversity and owner-occupier depth remain powerful. The challenge is buying the right asset at the right price. Best cash flow: WA Perth generally offers stronger yields than Melbourne and many parts of Queensland. Highest policy and holding-cost pain: Victoria Victoria’s land tax and investor sentiment remain major issues. Investors must factor this in properly. What Our Buyers Advocates Would Tell Investors If you are a cash-flow-focused investor, look seriously at WA, but do not chase the market blindly. Perth is hot, and hot markets attract lazy money. Lazy money usually buys the wrong stock. If you want a balanced growth-and-yield market, Queensland is very compelling, especially where flood risk, insurance cost, infrastructure, employment and supply are properly assessed. If you want long-term asset quality and are prepared to be patient, Melbourne should not be written off. In fact, Melbourne’s weakness may be exactly where the opportunity sits. But Melbourne must be bought with a sniper mindset. You do not buy “Melbourne”. You buy a specific property, on a specific street, with a specific tenant profile, school zoning, transport access, land component, planning risk, rental competition and resale market. That is where most investors go wrong. They buy a city story. Professionals buy an asset. Final Verdict: Melbourne vs QLD vs WA There is no single winner. It depends on your risk appetite and goals: WA is strongest for momentum and yield. Queensland is strongest for balance. Melbourne is strongest for contrarian value and long-term depth. But if I had to summarise it in one sentence: WA is where the numbers look best today, Queensland is where the story looks most balanced, and Melbourne is where the patient investor may find the best mispriced opportunities. The key is not choosing the hottest state. The key is choosing the right property before the market fully understands its value. That is how good investors win. Savvy investors do not follow noise. They do not chase headlines. They do not buy whatever a spruiker is pushing this month. In fact, if you must know what not to buy, look at what spruikers are pushing. There is obviously a reason why spruikers are pushing so hard. Good properties in good locations market themselves. Smart investors win by doing the work others are too lazy to do. Very Sun Tzu: do not fight where the crowd is charging — position yourself where the advantage is quietly forming. FAQ Is Melbourne a good place to invest in property in 2026? Melbourne can still be a good long-term investment market, especially for buyers targeting quality assets in established suburbs with strong owner-occupier appeal, transport, schools and employment access. However, investors need to be selective because Victoria has higher holding costs and weaker short-term momentum compared with some interstate markets. Is Queensland better than Melbourne for property investment? Queensland may offer stronger short-term momentum and better rental yields than Melbourne in some areas, particularly in Brisbane and South East Queensland. However, investors must carefully assess flood risk, insurance costs, local supply and whether recent price growth has already been priced in. Is Western Australia better for rental yield? Western Australia, especially Perth, has generally offered stronger rental yields and tighter vacancy conditions than Melbourne. However, WA can be more cyclical because the economy has greater exposure to mining and resources. Which state is best for property investment in 2026? There is no single best state for every investor. WA may suit cash-flow-focused investors, Queensland may suit investors seeking a balance between growth and yield, and Melbourne may suit patient investors looking for long-term value and mispriced opportunities. How do the 2026 tax changes affect property investors? The 2026 tax changes make asset selection more important. Investors can no longer rely as heavily on negative gearing and CGT benefits to compensate for poor cash flow or weak capital growth. Properties need to work on their own fundamentals

Why Melbourne Investors Need to Think Differently After the 2026 Budget Melbourne has been called the “recovery market” for years. And to be fair, there is some truth behind that view. Compared with Sydney, Brisbane, Perth and Adelaide, Melbourne has looked relatively cheap. It has lagged. It has underperformed. It has frustrated investors who expected Australia’s second-largest city to bounce harder after COVID. IT actually did, until the series of COVID debt recovery taxes slammed the brake. For years now, buyers can afford to be rather picky when buying in Melbourne. But not all properties are good. Cheap does not automatically mean good value. And expensive does not automatically mean bad value either. A property can be cheap because it is overlooked. It can also be cheap because the market has correctly identified its flaws and buyers are staying away. In 2026 and beyond, Melbourne is not a market where investors can afford to be lazy. The old formula of “buy anything, negatively gear it, hold forever and let tax benefits soften the pain” is being weakened. The Federal Budget has changed the rules of the game, especially for investors buying established property after Budget night. 7.30pm 12 May 2026. The line has been drawn. From 1 July 2027, negative gearing will be limited to new builds, while losses from established residential properties will generally only be offset against rental income or future residential property gains, with excess losses carried forward. Existing arrangements are grandfathered for properties already held before Budget night. IE, those properties that you already own before 7.30pm 12 May 2026, will still enjoy the old negative gearing rule. That means investors now need to ask a harder question: Does this property work on its own merits, or did it only look good because the tax system helped hide the weakness? That is the new Melbourne property investment test. Melbourne’s Recovery Story: There Is Truth in It Melbourne’s investment case has not disappeared. Ignoring the hype and speculations, the fundamentals in the Melbourne property market is one of the strongest in Australia. Melbourne remains one of Australia’s largest employment, education, migration and lifestyle markets. It has deep demand from owner-occupiers, students, professionals, migrants, medical workers, families and long-term renters. It also has a genuine relative-value argument. While the often-hyped Brisbane, Perth and Adelaide markets have had strong runs, Melbourne has lagged. Some quality Melbourne suburbs are trading at prices that would have looked unusual compared with Sydney or Brisbane just a few years ago. This matters because property markets often move in cycles. The cities that run hardest eventually face affordability limits. The cities that lag can become attractive again when buyers start comparing value. But — and this is a big but — Melbourne is not one market. There is no such thing as “the Melbourne property market” in any useful investment sense. There are hundreds of micro-markets. Some had quietly improved. Some are flat. While many are overloaded with investor stock. Some have excellent long-term fundamentals but poor short-term sentiment. Some look affordable because they are sitting in supply-heavy corridors where land is not scarce, and vacancies are high. Treating all of Melbourne as a recovery play is like saying every restaurant in Lygon Street serves good pasta. Brave statement, dangerous dinner. What the Latest Data Is Really Saying The latest market signals are mixed. The Reserve Bank increased the cash rate to 4.35% in May 2026, after earlier increases this year, which has put renewed pressure on borrowing capacity and buyer confidence. Cotality’s April 2026 Home Value Index showed that Sydney and Melbourne had softened, with Melbourne values retreating and advertised supply increasing. Cotality noted that softer values were occurring alongside falling auction clearance rates and rising stock, giving buyers more choice and less urgency at the negotiation table. ANZ has also warned that Sydney and Melbourne are likely to underperform in 2026 because they are more sensitive to interest rates, with capital city price growth forecast to slow sharply. So, is Melbourne recovering? My honest answer: Yes. But only in certain pockets, not broadly enough to justify blind optimism. There are pockets where buyers are getting better value. There are vendors becoming more realistic. There are quality family homes, older houses on good land, well-located villas, and scarce assets that are worth watching closely. But the broader market is still dealing with: higher interest rates, weaker investor sentiment, tax policy uncertainty, rising supply in some areas, lower auction clearance, and tighter lending conditions. To most people, these suggests Melbourne is a minefield. But disciplined investors and buyers sees opportunities. The 2026 Tax Changes: What Investors Need to Know The biggest change for property investors in Melbourne and Australia is the reform of negative gearing and capital gains tax. Under the 2026 Federal Budget reforms, negative gearing for residential property will be limited to new builds from 1 July 2027. Existing arrangements remain unchanged for properties held before Budget night, and investors buying new builds can still deduct losses against other income. For established residential properties acquired after the relevant Budget night timing, the treatment changes. Losses from established residential property will generally no longer be used to reduce salary, wages or other non-property income. Instead, those losses will be quarantined and may be used against rental income or future residential property gains. The capital gains tax discount is also changing. The Government’s Budget material says the 50% CGT discount will be replaced with cost-base indexation and a 30% minimum tax rate framework, with reforms applying to gains accruing after 1 July 2027. In plain English: tax benefits are becoming less generous for established property investors. This does not mean property investment is dead. It means lazy property investment is dead. A strong property still works because of land value, scarcity, location, rental demand, household income, school zones, infrastructure, transport and long-term desirability. A weak property previously survived because tax benefits helped investors tolerate poor cash flow and average growth. That safety net is being cut back, with negative gearing incentives only remaining intact only for the weakest market. Established Property vs New Builds: The New Investor Dilemma The Government wants to push investors towards new housing supply. That is why new builds receive more favourable negative gearing treatment under the proposed rules. On paper, that sounds simple: buy new, keep tax benefits. In practice, investors need to be careful. Whenever lazy investors see incentives, they see opportunities. But the cautious investors sees red flags. New builds can be useful when the numbers stack up. They can offer depreciation benefits, lower maintenance, stronger tenant appeal and better energy efficiency. But they can also be overpriced, poorly located, supply-heavy, badly built, or sold with too much developer margin and government fees baked in. A brand-new house in an oversupplied estate is not automatically a good investment just because the tax treatment is better. Likewise, an established house on is not automatically a bad investment just because the tax treatment is less generous. Each property needs to be separately evaluated. The correct question is no longer: “Can I negatively gear it?” The correct question is: “Would I still buy this property if there were no tax benefits?” If the answer is no, it probably is not worth investing in. You have a tax-deductible headache. What This Means for Melbourne Investors Melbourne investors now need to become more numbers-focused. For years, too many investors bought mediocre properties because the old tax treatment softened the pain. Negative gearing made the holding loss feel more manageable. The CGT discount made the exit look more attractive. That encouraged some investors to accept poor yield, poor land value, poor location and poor asset selection. The new environment is less forgiving. A good Melbourne investment in 2026 and 2027 needs to pass several tests: It should have genuine tenant demand. It should have owner-occupier appeal. It should not rely solely on tax deductions. It should have scarcity. It should not be surrounded by endless competing supply. It should have access to jobs, schools, transport, shops and lifestyle amenities. It should not be compromised by main roads, powerlines, flood risk, poor zoning, bad body corporate structures or awkward floor plans. In other words, investors need to buy like professionals, not hopeful amateurs, relying on social media hype, mate-have-one-and-I-want-one-too mentality. And yes, that sounds obvious. But in property, “obvious” is often where the money is made — because proper due diligence is tedious and most people take the easy way out. Melbourne Suburbs: Where the Opportunity May Sit I would not write a lazy list of “top 10 suburbs to buy in Melbourne” and pretend every property in those suburbs is a winner. Things change quickly in the property market, and that is how people get burnt. One recent sale in the area can flip the market from a "buy" to a "avoid" territory. Instead, I would look at suburb characteristics, because these basic fundamentals apply in ALL markets. You just have to look for that. 1. Established family suburbs with strong owner-occupier demand These are areas where families want to live long-term because of schools, safety, transport, shopping, parks and community feel. Good examples can include parts of Glen Waverley, Mount Waverley, Doncaster, Box Hill, Bentleigh East, Blackburn, Ringwood, Vermont South, McKinnon, Oakleigh, Clayton and surrounding pockets. But the street, the school zone, the block, the floor plan matters. A poor property in a good suburb can still be a poor investment. 2. Middle-ring suburbs with land value and transport Middle-ring Melbourne still has long-term appeal where buyers can access the CBD, major employment hubs and lifestyle amenities. These suburbs often have established infrastructure and stronger resale appeal than outer growth areas. The key is avoiding overpaying for renovated emotion. A pretty kitchen does not fix a bad block, poor orientation, structural issues or a compromised location. 3. Suburbs benefiting from infrastructure, but not relying only on it Infrastructure can help. Melbourne’s Metro Tunnel is now operational, and major transport upgrades can improve access and convenience. But investors should not blindly buy near every station or project. Infrastructure can increase demand, but it can also attract density, noise, traffic, parking pressure and oversupply. 4. Selective unit and villa markets Not all units are bad. Not all houses are good. Older, well-located villas or low-density units in established suburbs can sometimes offer strong rental demand and better affordability. But high-rise investor apartments in oversupplied locations remain dangerous, especially if body corporate fees are high and resale demand is thin. The rule is simple: scarcity wins. Commodity stock struggles. Forecasts for Melbourne Property in 2026 and 2027 and Beyond Forecasts have shifted quickly. Earlier forecasts were more optimistic, with some groups expecting Melbourne to rebound strongly in 2026. Domain had previously forecast stronger national and Melbourne growth, while other analysts saw Melbourne as a recovery candidate due to its underperformance. Melbourne was on the cusp of recovery in late 2025, but a series of interest rates hikes and the Iran War, dampened things. While the negative gearing changes can further suppress demand, Melbourne investors are expected to benefit from the revised CGT scheme. ANZ now expects capital city price growth to slow, with Sydney and Melbourne likely to underperform in 2026. Some major bank and economist commentary after the Budget has warned that investor demand may weaken and that Sydney and Melbourne may face price falls or flat conditions, especially in the short term. My view is this: Melbourne in 2026 and 2027 is likely to be uneven, not explosive. Quality assets may hold up well. Compromised properties may struggle. Investor-heavy locations may soften. Scarce family homes may remain resilient. New builds may attract more tax-driven demand, but that does not guarantee good capital growth and yield. Established properties may become more negotiable, especially where vendors are exposed, tired or unrealistic. The best buyers will not be chasing hype. They will be looking for facts and data, realistic sellers, mispriced assets and long-term fundamentals. The Big Mistake Investors Make The biggest mistake in 2026 and 2027 will be reacting emotionally to tax changes. Some investors will panic and avoid established property altogether. Others will rush into new builds purely to preserve negative gearing. Both can be wrong. A bad new build is still bad. A good established property can still be excellent. The tax should not not be the reason why you invest or not. Investors need to model the property properly: purchase price, rent, vacancy risk, interest rate sensitivity, land tax, council rates, insurance, body corporate fees, maintenance, depreciation, after-tax cash flow, future resale demand, and realistic capital growth. Be Cautious with Anyone Marketing New Build You've seen this. The top 3 secret boom locations that these spruikers often proclaim. But no, they won't disclose where they are because their locations are "secret" and only their subscribers can invest in. And so, you're enticed into signing up to their services, only to discover you're buying one of the hundreds of brand new builds. New build marketers often operate outside of the real estate legal framework. Many of these project marketers are just off-the-street salespersons, not licenced real estate agents. They claim they do not need to be licenced as they are just administrators, working on behalf of Agent Scott. So, they produce Scott's licence, if challenged. This is illegal. They target the lazy or rookie investors who just want to buy an investment property and has no interest in doing proper due diligence. They're often claim optimistic rent, a low vacancy assumption, a perfect interest rate forecast and a generous tax outcome. Always independently verify their claims. Good investing should survive imperfect conditions. What Buyers Should Do Now For investors looking at Melbourne in 2026 and 2027, this is not the time to sit on the fence forever. But it is also not the time to buy blindly. The uncertainty in the market is making buyers and investors stay away, and with less competition, this is a great time to get into the market. The uncertainty is giving buyers more leverage than they had during the hotter cycles. More supply and softer sentiment can create opportunities. But that advantage disappears quickly if you buy the wrong property. The smart move is to be prepared before everyone else regains confidence, and this means: Know your borrowing capacity. Get tax advice before purchasing. Model the cash flow without relying on generous tax benefits. Understand whether the property is new, established or grandfathered. Compare recent comparable sales, not agent hopes. Inspect the street, not just the house. Check school zones, overlays, zoning, flood risk, bushfire risk and powerline proximity. Understand rental competition within the area. Negotiate hard, but only after knowing true value. This is where investors can create an edge. As Sun Tzu would say, victory is won before the battle "是故胜兵先胜而后求战，败兵先战而后求胜". In property terms, the purchase is won before the auction, before the offer, and before the agent knows you are serious. How does the Melbourne Compare to Queensland and Western Australia? Compared with QLD and WA, Melbourne is the value-and-recovery play. Queensland and WA are the momentum-and-yield plays. Different game. Here’s the blunt version. Market Current character Main upside Main risk Melbourne / Victoria Undervalued, soft sentiment, more negotiable Better relative value, deeper economy, long-term population/jobs base Higher land tax burden, weaker short-term momentum, tax changes hit established investors Queensland Still strong, but more mature in the cycle Population growth, lifestyle migration, tight rental markets Some areas already expensive; flood risk; investor-heavy pockets exposed Western Australia Strongest momentum, tightest rental market Better yields, strong rent pressure, affordability vs eastern capitals Mining-cycle exposure, boom/bust history, Perth may already be well into the run For more details, click through for detailed analysis and our verdict. Final Thoughts: Melbourne Is a Sniper Market Melbourne still has long-term investment appeal. It has scale, jobs, education, migration, lifestyle demand, established infrastructure and relative value. But the 2026 market is not a simple “Melbourne will boom” story. It is more complex than that. The latest tax changes mean investors must be more disciplined. The latest interest rates environment means borrowing power is tighter. The latest data shows softer conditions in Melbourne and more choice for buyers. The latest forecasts are no longer universally bullish. This is not bad news. In fact, for serious buyers, it IS good news. When the market is uncertain, emotional buyers step back. Lazy investors get confused. Spruikers start pushing whatever product still pays them. And buyers who know what they are doing, get the rare chance to negotiate. Melbourne property investment in 2026 is not dead. But the lazy version of it is. The winners will be the buyers who choose quality, understand the tax changes, avoid compromised stock, and buy with clear numbers rather than blind optimism. In this market, you do not need to buy everything. You just need to buy the right one. And for the right buyer, the right property is still out there.

The 2026 Federal Budget announced on the 12 May 2026, has changed the property conversation. Negative gearing is being limited. Capital gains tax treatment is changing. Trusts are under more scrutiny. Investors are suddenly doing what investors always do when the rules change: recalculating, hesitating, defending old decisions, and pretending their spreadsheet is more objective than their ego. But here is the bigger point. Tax policy does not buy property. Borrowing capacity does. That is why we have to look at the Budget changes together with serviceability, affordability, rental demand, housing supply, buyer psychology, and market segmentation, just to answer one simple question: “Will the Budget 2026 changes cause property prices crash?” Or, maybe, the better question should be: “Which properties will become harder to justify, and which properties will remain resilient?” Because Australia, including Melbourne, does not have one property market. A quality family home in a tightly held school zone will not behave the same way as a generic investor-focused apartment in an oversupplied or overpriced precinct. Same country. Different Property. Different Location. Different dynamics. First, what has actually changed? The Government has announced major reforms to negative gearing and capital gains tax. These changes are designed to reshape where investor money flows, away from established dwellings and towards new housing supply. But let’s be clear: negative gearing is not dead. It has changed. Negative Gearing Changes From 1 July 2027, negative gearing benefits will be limited to new residential properties. Existing arrangements will be grandfathered, which means the changes do not affect current investors who already hold negatively geared properties. In most cases, current investors will keep their existing tax treatment for as long as they continue holding those properties. That matters. It gives many current investors a strong reason to hold rather than sell. If they sell, they may lose that slightly more favourable tax position. So instead of creating a flood of investor listings, these changes may actually encourage some existing investors to sit tight, tightening supply in the established properties. For established residential properties purchased after the Budget night cut-off on 12 May 2026, losses will no longer be deductible against salary and other personal income in the same way. Instead, those losses may be carried forward and used against future residential property income or capital gains. So again, negative gearing is still alive, but it has been tweaked. And this changes the numbers for future investors. Capital Gains Tax (CGT) Changes The current 50% capital gains tax discount is also being replaced with an inflation-based indexation approach. New-build investors will receive more favourable treatment compared with investors buying established dwellings. In simple terms, the Government is trying to make new residential property more attractive to investors than established property. The Government wants less investor demand chasing existing homes, and more investor capital helping to create new housing supply. That is the idea, but whether the market behaves that neatly is another question. When you read between the lines and understand the indexation method, the new CGT indexation method can penalise properties that outperform inflation, and is a better calculation for properties which underperformed. Effectively, it is hitting the Brisbane, Perth, Adelaide market and their investors. These markets have had explosive growth in recent years, outpacing inflation. Whereas the Melbourne market had performed that well. Will this then redirect attention to the Melbourne market as well? If you need more information of the changes and some myths and misinterpretations around these changes, head over to our other articles where we explain in more details what was changed, and their implications. 2026 Budget Changes 2026 Budget Myths and Mis-interpretations What This Really Tells Us There is also a quiet admission in these changes. Despite years of investors being painted as the problem, the Government clearly understands one uncomfortable truth: Property Investors supply rental properties. If investor activity is killed completely, the rental market gets hit. The Government is not building enough homes on its own, and they are not going to. Private investors will continue to play a major role in providing rental accommodation. So the Government is not trying to remove investors from the market altogether. It is trying to redirect them. This means less established property speculation, and, more new housing supply. That is the intention. The Missing Factor 1: Serviceability The Budget changes will influence investor behaviour. But serviceability will decide how much buyers can actually pay. Investors need to understand this. A buyer may want to pay $1.2 million. But when their mortgage broker say they can borrow only enough to pay $1.05 million. That $150,000 gap is not solved by confidence, mindset, or motivational property podcasts. What affects the investor's Serviceability? Serviceability is affected by: interest rates income living expenses household debt bank assessment buffers rental income shading credit card limits dependants loan-to-value ratio tax treatment of investment losses This is why the Budget changes are landing on a market that was already under pressure. Cotality’s May 2026 housing analysis says Australia’s housing market is close to a downturn, with higher interest rates and stretched affordability weighing on demand. It also notes Sydney and Melbourne are already in the early stages of decline, while growth is slowing across the mid-sized capitals. So the Budget changes are not happening in isolation. They are being added to a market already dealing with affordability stress. That makes the impact more powerful in some segments, but still unlikely to create a broad crash by itself. The Missing Factor 2: Demand and Supply Just like any free market, house prices are affected by Demand and Supply. When things are scarce, but demand is strong, prices go up. Buyers are willing to pay more to buy that. Sellers Are Not the Devil Sellers can demand $2million for their $1million dollar hour, and if no buyers see value in that asking price and are not prepared to pay that, there is no deal. The property stays unsold until the price either drop or demand catches up and buyers start seeing value in the the $2million price tag. Investors Aren't the Devil Either Most disciplined investors buy properties based on its ROI, yield, or growth potential. Investors' buying decision is driven strictly by numbers. They either expect the price to grow x% in y years, or they are expecting at least z% rental yield. Now, because these numbers are directly tied to the property's purchase price, they will not be paying for overpriced properties. In other words, They are paying no more than market price for properties they buy. There is also a hidden but obvious benefit to investor purchases. Investment properties adds to the properties in the rental market. Most investors are sensible. And sensible investors are not going buy a million dollar asset, lock it up while waiting for prices to rise. They will be leasing the property in the rental market. And it is often at a much lower price, than if the renter were to buy and live in it. Investors know the renters can only afford that much, and most would not risk having an empty property when they priced their rents too high. The government recognised that, and are helping investors provide lower-priced rental properties by a mechanism called negative gearing. It is not subsiding investors, it is just helping investor keep rental prices low, so renters can afford a lower priced rental property. Without these negative gearing, rents will need to be higher, to justify the investment and risks. Home Buyers Are Emotional Buyers From experience, home buyers often purchase the properties because there is something in the property they want. They want to be in good school zones, near shops, easy access to public transport, near city, and they want that "Feel Good" emotional feeling when they are in the property. Home buyers are often the emotional buyers who will pay slightly more than the next highest offer, so they can buy the property. They often do not mind pushing prices slightly higher to buy a property they have an emotional attachment with. This is important, as unlike renting, they will be stuck with the property for many more years to come. Sales agents know home buyers are driven by emotions. And their jobs are to "encourage" the buyers emotions. Most buyers hate this as this usually lead them to stop thinking sensibly and overpay. This is why buyers who understand this dynamics would prefer to engage a buyers agent as a go-between to filter these emotions. And statistics show this strategy works. We saved a home buyer half a million from their home purchase some years back. And had recently saved a buyer $130k. Will property prices crash? No, I do not expect a broad property price crash from these Budget changes alone. A real crash usually needs something more severe, such as: rising unemployment forced selling credit tightening financial system stress major oversupply a sharp interest rate shock widespread mortgage distress Tax changes can reduce demand, especially investor demand, but they do not automatically force large numbers of owners to sell. Commonwealth Bank (CBA) expects the Budget changes to make established investment properties less attractive and estimates prices will be about 3% lower than they otherwise would have been, with a smaller impact on rents. CBA also revised its dwelling price growth forecast to 3% to December 2026, down from 5%, while leaving its 2027 forecast at 3%. That phrase matters: "Lower than they otherwise would have been." It does not necessarily mean prices fall 3%. It means prices rise more slowly. Some markets may go sideways. The weaker investor-heavy stock will falls, while quality owner-occupier stock still rises. So no, this does not look like a blanket property crash. It looks more like a market split. The market will not move as one The Budget changes will affect different property types very differently. The impact will depend on: how much investor demand exists in that segment whether the property is new or established whether the property has owner-occupier appeal rental yield land value scarcity local supply borrowing capacity of likely buyers affordability pressure in that price bracket whether buyers are emotionally or financially driven This is where sweeping statements becomes useless. A $550,000 investor-focused apartment, a $900,000 townhouse, a $1.4 million family home and a $2.5 million school-zone property are not the same market, and they will not behave to these changes 1. Established Investor Properties will be Affected Existing investors are protected from the negative gearing changes, but future capital gains from 1 July 2027 may still fall under the new CGT rules. That means current investors are not completely untouched, although the impact will only be realised when they eventually sell. The biggest loser is established properties that only become attractive because of tax treatment and hoped-for capital growth. This includes: investor-focused apartments generic townhouses low-land-content dwellings properties with high owners corporation fees low-yield properties high-maintenance rentals properties in areas with heavy investor ownership assets that only made sense because of negative gearing Buyers of these established properties will be asking a very fair question: “If I cannot offset the loss against my wage income, and the CGT treatment is less generous, why am I buying this?” This question alone will immediately reduce demand in certain markets. The weaker the property fundamentals, the bigger the problem. A CBD apartment which is already facing a difficult sale, will take a lot longer to sell, or sell at a price (usually much lower) that makes sense to the new investor. Resale prices of brand new CBD apartments which are currently selling at 20-30% loss, will have to be priced lower. Many of these average assets will be exposed, not because they suddenly became bad properties, but because they were never that good in the first place. The current tax system was just sweetening the bad deal. 2. New Builds Will Attract More Investor Attention Because the negative gearing rules now favour new residential properties, some investor demand will likely move toward new builds. Tax-benefit-sensitive investors will now be focusing on: new apartments townhouses house-and-land packages development pre-sales growth corridor properties This is exactly what the Government wants: push investor capital toward creating new supply instead of bidding up existing homes. But there is a trap. There is a reason why experienced investors avoid investing in these new properties. New Builds can be a Trap For a long time, new builds have always been affordable. There has never a supply issue with new builds. But there is a demand issue. Not many buyers are buying them. While first home buyers felt investors ("investors" because the mass media narrative says so) are beating them to the $950k house, many sub-$700k properties are available for immediate purchase, with little to no competition. You can buy one, and some vendors are more than happy to give you an incentive to buy them! And there are reasons why these properties are untouched: Weaker Infrastructure and Amenities High rental vacancies Weak land content body corporate costs Usually oversupplied Remote locations, no long-term buyer demand With the change in negative gearing rule, investors will be attracted to these new builds, but investors should proper due diligence. The negative gearing tax benefit does not turn a bad asset into a good one. It just makes the bad asset look prettier in the glossy brochure. Honest Buying Advice: Do not be attracted by the negative gearing rule. It may attract you to buy the oversupplied apartment, or faraway house. When you sell, your "New Build" becomes an established and the investor taking over your property will not enjoy the Negative Gearing benefit. They will price their offer accordingly. 3. Blue-chip Owner-Occupier Homes Will Be More Resilient These tax changes are less likely to affect quality owner-occupier homes. Quality family homes in strong owner-occupier suburbs should hold up better because most buyers are not purchasing them for negative gearing or tax benefits. They were bought for: school zones land lifestyle family needs scarcity long-term security location emotional attachment generational wealth A family trying to buy into Glen Waverley, Mount Waverley, Balwyn, Camberwell, Doncaster, Kew, Brighton, Box Hill or other tightly held suburbs is not sitting at the dinner table obsessing over the new negative gearing rules or how the CGT is calculated. Taxes are not the reasons why they buy it. They want the right home, in the right location, and for many other long-term reasons. That is a very different type of demand. While investors may become more cautious because of affordability, serviceability and tax treatment, buyers and investors in the blue-chip owner-occupier market are often more adaptable. If their borrowing capacity is reduced, they do not leave the market. Many simply adjust their target. For example, an investor or buyer who was looking at a $3 million Balwyn home but finds their serviceability restricted to $2.5 million may not disappear. They may simply move their search to a $2.5 million Glen Waverley school-zone home, or another premium family in Mount Waverley that fits their budget. That is why the $1 million to $3 million prime Melbourne property market is unlikely to run out of buyers overnight. There is still strong demand from: high-income local families professional couples upgraders interstate buyers overseas buyers migrants school-zone buyers buyers with equity long-term wealth-focused owner-occupiers That does not mean every blue-chip property will rise. Compromised homes in blue-chip locations will still struggle, as usual. A bad floorplan, main-road position, bad orientation, steep block, easement issue, poor renovation, or unrealistic vendor expectation can still hurt the result. But good homes in quality locations will continue to attract competition. Here's how the property demand works: Tax changes reduce investor demand. Serviceability limits owner-occupier demand. Scarcity protects quality assets. That is the triangle. 4. Lower-priced Established Homes May Become More Accessible, but May Not Be Cheap That is the good news is, First-home buyers may benefit from reduced investor competition in some established property markets. But the not-so-good news is that good established properties will be rarer. In fact, the CGT and negative gearing changes will encourage owners of quality established properties to KEEP them. Why sell a quality property and be put onto the new negative gearing rule? The first home buyers' struggle to get decent lower priced properties in established areas is expected to get tougher. And when quality stock gets lesser, while demand remains or increase, prices go up. Quality houses in high-demand locations are expected to rise in price, not necessarily a drop in price. On the other hand, lower-priced properties with poor fundamentals (aka bad property) are expected to get cheaper. These had never had a supply problem anyway. So, first home buyers looking at affordable low-priced established homes will likely end up with a property with poor fundamentals. How will current property investors respond to the 2026 Budget? This is the key behavioural question. Not what investors should do. What they probably will do. Most Existing Investors Will Hold Because existing negative gearing arrangements are grandfathered, many current investors will hold their existing properties, especially if it is a high quality investment property. That creates a lock-in effect, locking buyers out of good properties. If they keep the property, they preserve the old tax treatment. If they sell, they may lose that advantage and then face the new set of rules, which is usually less favourable, if they buy another established investment property later. CBA expects housing turnover (supply) to fall initially because grandfathered investors have a stronger incentive to hold. So despite the dramatic mass media headlines, I do not expect a flood of new investor listings across the board. Many investors will, in fact, do nothing, because there are no changes to the tax rules if they do nothing and do not sell. And psychologically, many investors of these bad properties would prefer the low-effort status quo path anyway. They are usually the ones who jump onto social media to crowd source for the Top Boom Locations, or they copy their friends, because when their friends had bought one, it automatically makes a location feels good. Low effort investment strategy plan is a plan for long term pain. Some Investors Will Sell Weak Assets The Budget changes will make proactive investors review their portfolios more carefully. Investors will look at: rental yield land tax owners corporation fees maintenance vacancy risk insurance interest costs capital growth history future growth outlook to determine if the property still deserves a place in the portfolio Weak assets will be reviewed first, and this means some investors will start selling: poor-quality apartments low-yield properties high-maintenance houses properties in weaker oversupplied rental markets properties where the cash flow pain is no longer justified But not everyone will be dumping everything at once. Property investors tends to be very good at holding onto average assets while telling themselves “it is a long-term play”. This also let them keep them their "x properties" bragging rights at BBQs. Sometimes they are right, but most of the times, they are just emotionally attached to a bad purchase. Highly Leveraged Investors Will Become More Cautious Serviceability (or the lack of it) will be a major brake on investor activity. Under the new rules, some investors buying established properties may not receive the same lending benefit from negative gearing assumptions. The new rules will reduce borrowing power for some investors, especially those who are already highly leveraged or rely heavily on negative gearing strategy for the next purchase. The result? These investors will: pause refinance first reduce debt build buffers delay buying buy cheaper buy with higher yield consider new builds look at commercial property compare property with shares, ETFs and super stop buying altogether unless the numbers are compelling Aggressive investor with strong income, equity and borrowing capacity will still move, while the marginal investor will hesitate. That hesitation matters, especially in investor-heavy markets. Investor interests in these markets is expected to drop. How Will New Investors Respond to the 2026 Budget? New investors will become more numbers-focused. They have to. The new negative gearing and CGT changes means it is very unforgiving to investors of bad properties. The old formula of relying on negative gearing to get ahead becomes a lot weaker: Buy an established property, run a loss, offset that loss against personal income, hold long term, then rely on the 50% CGT discount later. For established properties purchased after the cut-off, the ability to offset losses against salary or other personal income no longer works the same way. The property now has to work harder on its own merits. But here is the next problem. Spruikers and project marketers will push brand-new properties even harder because negative gearing still applies to new builds. Technically, they may not be wrong. But investors need to ask: “This tax benefit may work for me as the first buyer. But what happens when I eventually sell?” The next buyer may not receive the same benefit once the property is no longer new. A savvy future buyer will look past your original tax strategy and assess the asset itself. They will ask: Does the cash flow work? Is the rental yield strong enough? What is the land tax exposure? What is the vacancy risk? Is the property sensitive to interest rate changes? Does the loan still service if conditions change? Are the capital growth fundamentals strong? Does the property still make sense without tax incentives? This is actually a good thing. Too many investors have bought mediocre property because tax treatment softened the pain. A poor asset could look tolerable because the tax system helped carry the loss. That does not make it a good investment. It just makes the mistake less obvious. For years, opportunistic developers and project marketers have used this to sell overpriced, substandard properties in oversupplied locations. “Look at the depreciation.” “Look at the tax benefit.” “Look at the rental guarantee.” Beautiful brochure, but ugly fundamentals. Now the asset has to stand more on its own merits. That is healthy. But some investors will still chase new builds purely because the tax treatment looks better. While the savvy investors are buying better assets, the dangerous investors will chase tax benefits from project marketers with glossy brochures, optimistic rental projections and a suspiciously perfect growth story. That group needs supervision — preferably from someone with a calculator, market experience, and a nonsense detector. How Will Owner-Occupiers Respond to the 2026 Budget? Owner-occupiers will remain active. Nothing has changed for owner-occupiers. Affordability will shape behaviour as usual. They will: become more cautious and avoid overextending focus harder on repayment comfort walk away from compromised properties faster prioritise lifestyle and school zones compete strongly for quality homes become less forgiving of bad streets The days of buyers blindly stretching for anything with a roof are likely to soften in some less established areas. Quality homes will still attract competition, and competition is expected to get a lot tougher. Why? Because supply is further limited and good homes are harder to come be, as current owners hold on to quality properties, reducing quality stocks in the market. A-rate properties will still perform. B-grade properties may go sideways. C-grade properties will slide. How Will First-Home Buyers Behave? First-home buyers may get a better chance in some segments. They may face less investor competition for established properties, especially lower-priced apartments, units and houses, in over supplied locations. But if they believe they can pick up a quality inner city property for cheap, they might have to keeping waiting. With less quality properties coming into the market, and a never ending demand for them, they will get the same "outpriced" feeling. The new negative gearing and CGT changes does nothing to improve this feeling. It will, in fact make it worse. Good properties will be harder to come by. If they are serious about home ownership, they might have look further, in locations which currently do not have supply issues. But what the budget did not mention is, even these locations, which used to be cheaper, will be more expensive, as investors are now attracted to them. First home buyers will need to expect to pay more to buy them, due to the higher competition. So, while these new tax changes does not magically make a $1 million home affordable for someone approved for $750,000. It will likely cause increased competition for these new house and land packages, driving prices up. Just like any government supported incentives, instead of helping first home buyers, these changes will in fact make it harder for first home buyers. The Budget still assumes strong population growth and continued net migration, which will keep adding pressure to housing demand, especially in major cities. And population growth without the corresponding increase in housing supply will put pressure on housing demand, pushing prices up, making buying the first home harder. How Will Upgraders Respond to the 2026 Budget? Upgraders are very important, especially in Melbourne’s family-home markets. They might have equity, but they are still challenged by current owners holding onto good properties. They will also face higher prices, and if it does not make financial sense for them to upgrade, they will delay the plan or not do it at all, creating another lock-in effect. So in quality family suburbs, we may see limited supply because owners are reluctant. The limited supply will often lead to higher prices, even when buyer demand softens. This is why high-quality owner-occupier areas may remain more resilient than the headlines suggest. What is the Effect of the 2026 Budget Changes to Renters? Renters are unlikely to get major relief in the short term. They may, in fact, be worse off. That may sound unfair, but it is the likely outcome. Rents are driven by rental supply and tenant demand. Good locations will be more expensive to rent, and harder to come by, while rent in locations where no renter wants, such as growth corridors, new estates will soften further. Right now, the rental market is still tight. Cotality’s May 2026 analysis says affordability pressure is already weighing on housing demand, and its recent housing data has continued to show tight rental conditions across many markets. The Budget changes may affect renters in two opposite ways, depending on the market conditions. Possible positive effect for renters If investor money shifts into new housing, the rental pool will increase, and rental supply could improve, leading to less competition for rental properties and thus, lower rent. But this will not happen overnight. There will be a lag of at least 2-3 years, before significant changes can be noticed. This lag is due largely to time needed for planning, financing, construction, etc. Councils take even more time, because apparently paperwork always needs a spiritual journey to the netherlands. So even if the policy works, renters may not feel relief quickly. Where will the new rental supply be? The more important question is, where will these new supply of rental properties be? New estates, of course. That's where investors will be attracted to from now on. Do they current have a rental supply issue right now? No. In many new estates, vacancy rates are as high as 4-5%. Every second house is available for rent, and renters are not short for choice. But why are renters do not want them, due to the location. Possible negative effect for renters When investors buy fewer established rental properties, and some existing rental homes are sold to owner-occupiers, the number of rental properties in some suburbs WILL shrink. That is especially important for family trying to get rental properties in established suburbs with good schools and amenities. You cannot easily create more detached family homes in Glen Waverley, Mount Waverley, Doncaster, Balwyn, Camberwell or similar areas. If investor-owned family homes are sold to owner-occupiers, renters looking for family homes in those areas may face even tighter supply. And the law of demand and supply say, high demand + low supply = higher rental prices. So the rental impact will not be uniform. Apartment renters and renters renting in new estates with new supply may eventually benefit, it will be easier to get a rental property. Increased supply = lower rent, as these places never had high demand anyway. Family renters in established suburbs may face more pressure. And the law of demand and supply say, high demand + low supply = higher rental prices. What Do the Changes Mean to Rental Prices? Rents are NOT expected to fall across the board. In fact, rent is expected to RISE in established suburbs with good amenities. So, this is how rent prices could play out: rent in established homes continue rising supply of rental family-home with good amenities and fundamentals gets less, and rent is likely to rise faster apartment rents depend heavily on new supply growth corridor (new estates) rents depend on infrastructure and population flows rents in current high vacancy markets is expected to slide. There is also a practical limit to rent increases. While landlords may want to increase rents, tenants can only pay so much. If rents rise faster than incomes, renters will likely respond. We are already seeing tenants reduce rental costs by: sharing homes moving further out delaying moving out of family homes accepting smaller dwellings relocating to cheaper suburbs leaving expensive markets altogether So rents may stay under upward pressure, but affordability will eventually limit how much more landlords can extract. The market can be brutal, but tenants have to be ready to move. As they say "vote with your feet". Will Property Prices Rise, Fall or Stay the Same? The answer is yes. Prices will change. But different segments will do different things. Prices may fall or underperform in: investor-heavy apartment markets poor-quality established units high owners corporation fee properties generic townhouses low-yield investment stock oversupplied new-build areas suburbs with weak employment access properties relying heavily on tax benefits locations where buyers are already at their borrowing limit These assets may not crash, but they will have less support. Prices may stay flat in: middle-ring suburbs with mixed buyer demand average townhouses older homes needing expensive renovation secondary locations properties that are decent but not special areas where buyer interest exists but serviceability caps bidding This is where we may see long periods of sideways movement. Prices may continue rising in: scarce family-home markets strong school zones land-rich suburbs tightly held owner-occupier areas affordable areas with strong employment access markets with limited listings selected new-build markets with genuine demand areas where supply is structurally constrained Good properties will not become cheap just because tax rules changed. With less supply of good properties in the rental market, rent is expected to increase faster. Melbourne Property Market Outlook 2026 and Beyond Victoria already has higher investor friction because of land tax and holding costs. Investor sentiment in Victoria has already been weaker than in some other states. Now, when you add: negative gearing changes CGT changes affordability pressure tight serviceability uneven population flows weaker sentiment in some Melbourne segments The result is going to be a very segmented market. Melbourne apartments Most exposed, especially investor-focused apartments with poor owner-occupier appeal. Older apartments in good boutique blocks and strong locations may still perform reasonably, since their holding costs are low. Generic high-density investor stock, is more vulnerable. Melbourne townhouses Townhouses in Melbourne is expected to have mixed performance. Good townhouses near transport, schools and lifestyle amenity should hold up. Poorly designed, cramped, dark, high-density townhouses with weak land value may struggle. Blue-chip family homes These will be more resilient. These are driven by owner-occupiers, not negative gearing. CGT and negative gearing has never played a role in their ownership decision. Serviceability may cap how high buyers can go, but scarcity will still support good homes. Balwyn buyer may now buy a Glen Waverley mansion, while a Toorak or Hawthorn buyer will now be looking at Kew and Balwyn. There will not be a shortage of buyers. School-zone homes Still strong, but not bulletproof. A good school zone will not save a bad floorplan, bad street, easement issue, flood concern, main-road position or badly overcapitalised property. School-zone buyers may still compete hard, but they will be more selective. Growth corridors Some growth corridors may benefit from investor interest in new builds. New investors are now attracted to the possibility of old negative gearing rule. However, depending on your goals, most are not suitable for investors. These areas tends to have lots of supply in the pipeline, and they do not usually attract renters. IE, most of the locations along growth corridors suffer from high vacancy rates, low growth. It is basically in a over supplied market. But not all are bad. some estates are in demand, even though they may be further from the CBD. If you are investing in these growth corridors, keep a look out for: oversupply weak scarcity infrastructure lag small land sizes poor transport build quality future resale depth A new house-and-land package is not automatically an investment-grade asset. Sometimes it is just a paddock with depreciation. What Will Happen to Property Markets Across Australia? The effect of the negative gearing and CGT changes will not be the same across Australia. Sydney and Melbourne More vulnerable to affordability pressure because prices are already high and serviceability is stretched. Cotality has noted Sydney and Melbourne are already in early decline phases, with affordability and rates weighing on demand. Quality assets should remain resilient, but weaker stock may soften. Brisbane, Perth and Adelaide These markets have had stronger recent momentum, supported by affordability advantages, supply shortages and migration trends. Cotality’s 2026 outlook noted that Queensland, Western Australia and South Australia were supported by relatively better affordability, internal migration and housing supply shortfalls. However, given their recent explosive growth, they are expected to be the worse off, under the new CGT indexation method. Investors are already reassessing the impact as we speak. They may still slow, but the underlying demand picture may remain stronger than Sydney and Melbourne. Regional markets Regional Markets are expected to be Mixed as well. Strong regional centres with jobs, infrastructure, lifestyle appeal and tight supply may hold up. Weak regional markets with thin employment bases and poor rental depth may struggle. Regional property is not one category. Some locations are strong. Most are traps with nice trees. The Affordability Paradox The impact of affordability is the part buyers need to understand. The Budget changes may reduce investor competition and slightly reduce price growth in some areas. That will help with affordability. But serviceability ceiling due to higher interest rates and the inability to use property losses to offset personal wage taxes will reduce the purchasing power and may prevent some buyers from purchasing. Heavily leveraged investors will likely be locked out of the property market, until their serviceability improve. Example: A property that may have sold for $900,000 now sells for $870,000. That sounds like an improvement. But if the buyer’s borrowing capacity has fallen from $850,000 to $790,000 because of interest rates, expenses and bank buffers, they are still locked out effectively. So, while the market can become more affordable, the buyers will still feel they are unaffordable. That is why tax reform alone cannot fix housing affordability. Property prices are determined by demand and supply, and serviceability. To genuinely improve affordability, Australia needs several things to move together: more supply in the right locations lower construction red tapes and bottlenecks stable or lower interest rates wage growth in real terms better borrowing capacity housing planning reform, not tax reform infrastructure delivery more rental supply by encouraging private investments better-quality housing choices The Budget changes can help to a certain extent. It is never meant to be the whole machine. I believe the government knows it. And many are already invested in blue-chip locations, which, you know is set to rise further. What Will Investors Actually Do Next? Current investors will likely: hold grandfathered properties longer avoid selling unless the asset is weak push rents where the market allows refinance or restructure debt build larger cash buffers review land tax exposure sell poor-performing assets selectively delay new purchases look harder at new builds talk to accountants about CGT, trusts and deductibility become more focused on yield and cash flow New investors will likely: focus more on cash flow demand stronger rental yields compare new versus established more carefully chase depreciation benefits be more cautious with established properties look at new builds consider alternative investments rely more heavily on buyers advocates and property advisers to select the right asset still make mistakes if they chase tax benefits instead of fundamentals Investors will not disappear. But they will adapt. Some will become smarter. Some will become scared. Some will become fresh meat for project marketers. What Will Property Buyers Do Next? Owner-occupiers will likely: remain active in quality locations become more finance-conscious demand better value walk away from compromised homes prioritise long-term lifestyle and security focus on school zones, land and scarcity First-home buyers will likely: benefit from reduced investor competition in some established markets still struggle with borrowing capacity compromise on location or dwelling type use government schemes where available compete hard in affordable price brackets remain vulnerable to overpaying in popular entry-level suburbs Interstate and overseas buyers will likely: become more cautious about established investment properties seek stronger local due diligence compare Melbourne against other states focus on asset quality, rental demand and resale depth need better advice to avoid buying tax-driven rubbish The Property Outlook Over the Next 12 to 24 Months In our opinion, because the key negative gearing are grandfathered and CGT changes have no impact until investors sell, 1. No broad crash The Budget changes are significant, but not enough by themselves to crash the national market. In some markets, selling activities will increase, leading to softening of prices. These will likely happen in markets where property prices had outpaced inflation, and where selling under the current CGT is beneficial, eg, Brisbane, Perth, Adelaide. Whereas in markets such as Melbourne, we are not expecting to see such selling, as the price growth had lagged inflation. Selling under the new indexation method may be beneficial. 2. Slower price growth in most areas CBA’s updated forecast points to slower price growth after the Budget changes. This is true only because weak prices will offset the price boom of quality properties. 3. More segmentation Quality properties will separate from weak properties. 4. Established investment stock weakens Especially where the numbers only makes sense when negative gearing is factored in. 5. New builds receive more investor attention inexperienced investors being attracted by the possibility of offseting property loses against earmed income. But not all new builds deserve it. 6. Existing investors hold longer Grandfathering creates a lock-in effect, reducing stock of established properties in the market. Reduced supply without reducing demand leads to price rise. 7. Serviceability becomes the ceiling Even if buyers want to pay more, banks may stop them, as they can no longer offet propert losses against their taxes. 8. First-home buyers get slightly better conditions in lesser locations Less investor competition helps, but borrowing capacity still limits them. 9. Renters remain under pressure Rental relief depends on investors buying and putting the properties on the rental market. This is the only way to increase supply, tax changes penalising investors will not help. 10. Good advice becomes more valuable (and expensive) The gap between good property and bad property will widen. TL:DR? Yes, we know, there are a lot to digest and our team has gone through a long thought process to understand the changes, their impact and project what this means to the property market in the coming months. Table1: Summarises the essence of the article by Property Types: Market factor / buyer group Likely effect Price impact Impact to Renters Established investment properties Less attractive for new leveraged investors due to reduced tax benefits Flat to weaker growth; some falls in weaker stock Established rental properties in good locations become rare, Driving up rents. New builds Investors pivot toward new apartments, townhouses and house-and-land packages, competing with first home buyers. May see stronger demand, especially from investors, leading to price rise. Renters in growth corridors, will have more choices, leading to lower rent Blue-chip family homes Strong demand due to scarcity and lifestyle drivers Likely resilient; may still rise if supply stays tight Established rental properties in good locations become rare, Driving up rents. Investor-focused apartments More exposed due to weaker tax appeal and high investor ownership Higher risk of underperformance. Price will weaken further, as investors stay away. Investors selling out, reducing rental properties in market. Rent rise. Table2 Summarises the essence of the article by Buyer Type Market factor / buyer group Behavioural change Market Impact Current investors with grandfathered properties Many will sit tight rather than sell and lose favourable tax treatment Prefers to hold, reducing quality established properties. Listings gets rare, price rise. Highly leveraged investors Delay purchases, refinance, reduce debt, build buffers Softer demand in investor-heavy markets. Less demand for below average established properties. First-home buyers No change, Slightly better buying conditions, not necessarily cheaper homes and better quality homes. Home Buyers No change. Slightly better buying conditions, not necessarily cheaper homes and better quality homes. Final word The 2026 Budget changes will not destroy the Australian property market, but they will expose weak properties. Established investment properties with poor fundamentals will become harder to justify. New builds will attract more attention, but some investors will overpay for tax benefits. First-home buyers may get a better chance in some established markets being abandoned by investors, but serviceability will still limit what they can afford. Renters are unlikely to see major relief unless actual rental supply improves. The real story is not “property crash” or “property boom”. The real effect is further segmentation. Good assets will remain desirable and prices will rise faster. Average assets will need to work harder. Poor assets will lose the protection of generous tax settings lazy investor demand, leading to softening of prices. The Budget changes will not punish every property owner. They will punish lazy buying. And frankly, the market could use a bit of that.

2026 Australian Federal Budget: What the CGT, Negative Gearing and Trust Tax Changes Mean for Property Investors For Australian property investors, the 2026 Australian Federal Budget was not just another boring Canberra budget exercise. It was a line in the sand. A thick line that demands urgent attention. The Government has announced major changes to negative gearing, capital gains tax, and discretionary family trusts. The three areas that have shaped Australian property investment for decades. These reforms are aimed at making the tax system “fairer”, improving home ownership, and reducing some of the tax advantages enjoyed by higher-income investors. Now, before everyone starts panic-selling investment properties like toilet paper in 2020, let’s be clear. It is a good thing. This is not the end of property investing. But it is probably the end of lazy property investing. The old model of buying an average established property, running it at a loss, using negative gearing to soften the pain, then relying on capital growth and the 50% CGT discount to save the day. That lazy-investment strategy is now dead. It is dead dangerous, and should be avoided. And for many family trust structures, especially those using bucket companies or low-income beneficiaries, the tax game has changed too. This article will breakdown these changea and explain it in layman's term. So, let’s start unpacking it properly. First, what actually changed? The 2026 Federal Budget announced three big tax reforms affecting investors: Negative gearing will be restricted for established residential property. The 50% CGT discount will be replaced with indexation and a 30% minimum tax on capital gains. Discretionary trusts will face a 30% minimum tax from 1 July 2028. These are major headline changes. But the details matter. The devil is always in the details. And in tax, the details are where the little devils wear suits. But in this case, it might not be as bad as everyone has anticipated. 1. Negative gearing: what is changing? Negative gearing is when the costs of holding an investment property — such as interest, council rates, insurance, repairs and other deductible expenses — exceed the rental income. For years, property investors have been able to offset that loss against other income, such as salary or business income. Example: Sarah earns $180,000 per year as a doctor. She owns an investment property that receives $35,000 in rent, but her interest and expenses total $50,000. That means the property makes a $15,000 tax loss. Under the current rules, Sarah can usually deduct that $15,000 loss against her salary income, reducing her taxable income. That is the classic negative gearing benefit. But under the new Budget changes, this will no longer work in the same way for many future purchases of established residential properties. What happens to existing investment properties? Existing investors are mostly protected. Properties already owned before Budget night, 7.30pm on 12 May 2026, or contracted before the relevant cut-off, are expected to be grandfathered. That means existing negatively geared properties should generally continue under the old rules. The Budget materials state that the reform is aimed at limiting the benefits of negative gearing to new residential properties going forward, rather than retrospectively attacking existing holdings. That is important, because if the Government had applied this retrospectively, it would have caused a proper investor stampede. Not a correctionm, but a crash. So if you already own an investment property, the first message is: do not panic. It is time to review your position, but do not sell blindly. What happens to future established-property investors? For established residential properties acquired after the relevant Budget cut-off and subject to the new rules, losses will generally no longer be deductible against salary or unrelated income. Instead, the losses may be quarantined and used against: rental income from residential property; future residential property gains; or carried forward. In plain English, the loss does not necessarily disappear. But the immediate tax benefit is reduced. Losses are still retained to be used to offset future profit/income from the investment. Let’s look at this example: Human example: David buys an established townhouse David is a high-income engineer earning $220,000 per year. He buys an established townhouse in Melbourne as an investment, after budget night (12 May 2026). The property receives $42,000 per year in rent. But after loan interest, council rates, insurance, maintenance and other costs, the property costs him $60,000 per year to hold. So David has an annual property loss of $18,000. Under the old system, he may have been able to use that $18,000 loss to reduce his taxable salary income to $202,000, thereby reducing his personal income tax. Under the new system, if the property is caught by the new rules, that loss may not reduce his salary tax bill immediately. Instead, he will need to carry the loss forward or use it against future property income or property gains. So David still owns the asset, still gets the rent, still gets any capital growth. But the tax system no longer give him an almost instant tax benefit for holding a loss-making established property. That is the change. Although negative gearing still exist, the fact that you can only offset this loss against future investment income means you need to be able to financially maintain the loss for many more years, and hope the property eventually either appreciates enough or turns positively geared and generates sufficient income to cover the loss. In the current Melbourne and Australia market, most metropolitan properties may never become positively geared for the first 10, 20 or 30 years. Factor this into your feasibility studies. It can bite you very hard, if your financial circumstances does not support this. New builds are treated differently The Budget clearly favours investment into new residential housing. The Government wants investors to help create housing supply, not just compete with first-home buyers for existing homes. So, under the announced changes, negative gearing benefits are expected to remain available for eligible new residential properties. That means a new apartment, townhouse, house-and-land package, or newly constructed dwelling may receive more favourable treatment than an established property. This is the shift in policy. The Government is effectively saying: “If you want tax help, add to housing supply. Do not just buy the same established house a first-home buyer wants.” Whether that works perfectly in the real world is another question. Because as experienced investors and buyers know, not all new builds are good investments. Most are beautifully marketed financial landmines. This is the reason why most new builds takes more than 3 times as long to sell. 2. CGT: the 50% discount is being replaced Capital gains tax (CGT) is the tax paid when you sell an asset for more than its cost base. This is also being changed with budget 2026. For many years, Australian individuals and trusts have generally been eligible for a 50% CGT discount if they held the asset for more than 12 months. Example: You buy an investment property for $900,000. Years later, you sell it and make a taxable capital gain of $400,000. Under the current 50% CGT discount rules, only $200,000 of that gain is included in your taxable income. That has been a powerful tax benefit for long-term property investors, but the 2026 Budget proposes to change that. The announced budget reform replaces the 50% CGT discount on established properties with a system based on cost base indexation, along with a 30% minimum tax on net capital gains. Buyers of new builds will have the option to choose either the new indexation method or the old "50% discount" method, depending on which benefits them. In simple terms, instead of automatically discounting half the gain, the cost base would be adjusted for inflation, and tax would apply to the real gain. Example: Mei sells an investment property Mei bought an investment property for $800,000. Many years later, she sells it for $1.4 million. Ignoring buying and selling costs, that looks like a $600,000 capital gain. Under the old CGT discount system, Mei may only include $300,000 in her taxable income, because of the 50% discount. Under the proposed indexation model, the original cost base may be adjusted for inflation. So if inflation-adjusted cost base becomes, say, $1 million, then the taxable real gain may be closer to $400,000. The exact result depends on inflation, ownership period, costs and the final legislation. But the big picture is this: The old system rewarded long-term asset growth with a simple 50% discount. The new system appears to be more focused on taxing real gains, which sounds fair, while making sure capital gains do not fall below a minimum tax rate. For some investors, especially those who hold assets during high-inflation periods, indexation may not be terrible. For others, especially high-growth property investors, losing the 50% discount could hurt. Ie, the properties that underperforms will be better off, while the better performer will be slapped with higher taxes. What Types of Properties are Considered New Builds? A property is considered a new build if it genuinely adds to the housing supply, under 12 months old and it has never been sold. Ie, your new apartments, new townhouse, new house in new estates would usually qualify. A heavily renovated established property, and knock down rebuild would not, because they do not add to housing supply. This is in line with the definition of new build for FIRB purchases. Will this apply to the family home? No. The main residence exemption remains the big protected beast in Australian tax for now. There had been speculations the family home might be affected, but it is being spared in this budget. Your principal place of residence is still generally exempt from CGT, subject to the usual rules and exceptions. "Generally" because there could be instances where some CGT might be applicable. 3. Trust tax changes: family trusts just got less attractive This is the one many business owners and investors need to pay attention to. The Budget announced a 30% minimum tax on discretionary trusts from 1 July 2028. This is aimed at family trusts and similar discretionary trust structures. The tax will be paid by the trustee. Beneficiaries still declare their trust income, but non-corporate beneficiaries may receive non-refundable credits for tax paid by the trustee. Corporate beneficiaries are treated differently, which is where bucket company strategies may become less attractive. This is not just a small tweak. It is a directed to addressing the income splitting loophole. How family trusts often work now A discretionary trust gives the trustee flexibility to distribute income to different beneficiaries. For example, a family trust might distribute income to: a spouse on a lower income; adult children; retired parents; a bucket company; or other eligible beneficiaries. For too long, accountants are recommending the discretionary trust structure to legally distribute income in a tax-effective way. Example: A family trust earns $120,000 in net income. Instead of distributing it all to one high-income person on the top marginal tax rate, the trustee distributes income across several lower-tax beneficiaries. This can reduce the family group’s overall tax bill. That has been one of the key attractions of family trusts, but he Budget change removed that benefit. Human example: the Chen family trust The Chen family has a discretionary trust that owns a positively geared investment property and receives some business income. The trust earns $100,000 in taxable income. Previously, the trustee might distribute income to adult family members with lower taxable income, reducing the overall family tax outcome. Under the proposed new system, the trust income will be subject to at least 30% tax. So if income is distributed to beneficiaries who would otherwise pay less than 30%, the trust structure may no longer deliver the same tax advantage. The trust can still operate, and income can still be distributed. But the tax benefit of sending income to very low-tax beneficiaries is reduced. In other words, the family trust is not dead. But one of its favourite party tricks has been taken away. 4. What about bucket companies? This is where things get spicy. A bucket company is commonly used to receive trust distributions and cap tax at the corporate tax rate, instead of pushing all income to individuals on higher marginal tax rates. In many structures, the trust distributes income to a company beneficiary. The company pays tax at the corporate rate, and the funds may then be dealt with under company, trust and Division 7A rules. Used properly, this can be a legitimate tax planning tool, but it can be a complex accounting nightmare. The Budget materials indicate that corporate beneficiaries will not receive the same credit treatment as non-corporate beneficiaries under the discretionary trust minimum tax rules. The intention is to stop people using corporate beneficiaries to sidestep the new minimum tax. So for those using a family trust and bucket company strategy, do not panic. Panic leads to selling the wrong assets. But this needs urgent modelling. Book some time with your tax accountant to understand how (if any) this impact your structure. And if it does, your accountant will be the best person to restructure your trust to save you tax, legal fees and future headaches. 5. Do these changes mean family trusts are useless? No, not necessary. That would be too simplistic. Family trusts may still be useful for: asset protection; estate planning; business succession; holding long-term family assets; separating business and investment risk; distributing income where tax outcomes still make sense; managing family investment structures. But if your trust exists mainly to spray income to low-tax beneficiaries or bucket companies, the benefit may be reduced. A trust is a legal structure, useful for the above purposes. The income distribution advantge might be a tax loophole which too many investors and accountants are exploiting. That loophole has now been reduced or removed. 6. What does this mean for property investors? This Budget does not destroy property investing. But it changes the discipline. For too many years, sales agents are selling overpriced apartments, townhouses have it easy. It will now be a lot more difficult to justify investing in a bad performer simply because the investor can offset their personal income taxes. This "strategy" now looks weaker, and investor interest in these properties will likely crash overnight.. Going forward, investors will need to care more about: asset quality; land value; scarcity; rental demand; owner-occupier appeal; suburb fundamentals; yield; holding costs; debt structure; exit strategy; and tax structure. In other words, selection of the property asset is now critical. Established property investors Established homes in strong Melbourne suburbs are not suddenly bad investments. A quality established property with scarce land, strong school zoning, transport access, lifestyle appeal and owner-occupier demand can still be an excellent long-term asset. Investors can no longer lazily rely on negative gearing and CGT discounts to paper over a poor purchase. That means buying mistakes will hurt more. Overpaying for compromised properties stock can now crash your investment portfolio. You can no longer lazy-buy based on the sales team promist of tax benefits. It will hurt more. The market could use fewer spreadsheet heroes buying junk because “the accountant said it’s deductible.” New-build investors What about new builds, you might ask? On the surface, new builds may become more attractive from a tax perspective. But investors need to be very careful. A new build is not automatically a good investment. Many new apartments and house-and-land packages are sold with: inflated developer margins; weak land component; high body corporate fees; poor resale appeal; generic design; oversupply risk; rental guarantee gimmicks; and glossy brochures that deserve an acting award. The budget is about shifting investor choices, making investing in new properties more attractive. But they do not turn a bad asset into a good one. Why isn't a new build always attractive? What can go wrong? One obvious impact is when you sell, the new build which you buy immediately becomes an 'established" property. The negative gearing tax incentives which you enjoy IS NOT applicable to the new owner. Investor will take this into consideration before making their offer. If your new-build does not have the right fundamentals, poor locations, oversupplied unit in a block a 500, offers are not going to be good, and you can expect higher losses than it is today. The incoming owner no longer has the negative gearing tax incentive to justify overpaying for it. Buying the right new build in the right location, with genuine scarcity and strong demand, is more important now. 7. What does this mean for Melbourne property buyers? For Melbourne buyers, especially investors, the impact will vary by asset type. Blue-chip and family-home suburbs Established houses in strong owner-occupier suburbs may remain resilient. These are typically areas with: quality school zones; strong household incomes; limited supply; good transport; village lifestyle; family appeal; land scarcity. These markets are not driven purely by investors. They are driven by people who want to (not have to) live there. Even if some investors pull back, genuine owner-occupiers grade properties can still support demand. Investor-heavy apartment markets Most investor-heavy apartment markets may be more exposed. If the tax advantages reduce, investors no longer have the negative gearing incentive to justify the investment, and they will become more selective. Properties with weak rental yield, limited growth prospects and high holding costs may struggle. Lazy investor who had bought without understanding the demand/supply dynamics and market fundamentals will be getting a rude shock when they sell. Most apartments are average stock at best, and cluey investor will avoid them. Middle-ring family homes Melbourne’s middle-ring family homes may remain attractive where land, schools, transport and lifestyle fundamentals are strong. But as above, price discipline becomes more important. If tax benefits are lowered or removed, investors can no longer justify overpaying and hope the tax system softens the damage. Demand will be weaker. 8. What should investors do now? Don't panic. Panic will only cause regrets. It is too late for any changes now. The line in the sand has been drawn. And that is 12 May 2026. But you should not do nothing either. It is time for a structured portfolio review. Here are some pointers you can use. Remember, these are generic guidelines, and does not consider your individual goals and circumstances. Engage a proper portfolio review by a licenced independent buyers advocates to understand the market, and get an independent assessment of your property potential. Step 1: Review your existing properties Ask: Are they positively or negatively geared? Are they grandfathered under the old rules? What is the current after-tax holding cost? What is the future after-tax holding cost? What is the likely long-term capital growth? Is the asset still worth holding without generous tax support? What will future buyers pay for your property? Would you buy the same property again today? That last question is brutal but useful. If the answer is no, you need to ask why you still own it. Step 2: Review future purchase strategy Going forward, investors need to model purchases under the new rules. Yes, this applies to both investors of established properties and New-builds. It is now more than a question of “Can I afford the deposit?” You need to also consider if you CAN AFFORD TO HOLD IT. Ask: What is the after-tax cash flow? What happens if interest rates stay higher for longer? What happens if rent does not rise as expected? What happens if the CGT outcome is less favourable? Is the asset strong enough without tax sugar? If the deal only works because of tax benefits, you probably should not buy it. Step 3: Review trust structures If you use a discretionary trust, speak to your accountant. Especially if your trust: distributes to low-income adult beneficiaries; distributes to a bucket company; holds investment properties; runs business income; has unpaid present entitlements; has inter-entity loans; has carried-forward losses; or is part of a broader family group structure. The Budget includes three years of rollover relief from 1 July 2027 for certain restructures, but restructuring should not be done lightly. Changing structures can trigger stamp duties, tax, lending, legal and asset protection consequences. Yes, changing may move you from the current grandfathered tax system to the new tax system. This is not a “copy a template from Google” job. Neither is it a "ChatGPT" job. You do not want to be the person to save $2,000 on advice and create a $200,000 problem. 9. Will property prices fall because of this? This is the million dollar question. Property prices probably will fall in some segments, not all. Do not expect a simple Australia-wide crash just because negative gearing and CGT rules are changing. Property prices are influenced by many factors: interest rates; wages; migration; housing supply; lending policy; employment; construction costs; buyer confidence; local amenity; school zones; scarcity; rental demand. Tax is important, but it is not the only driver. The major CGT changes only applies when you sell. The Budget will reduce some investor demand for established properties, especially from highly leveraged investors, and investors of poor performing properties. Some analysis suggests the Government expects more homes to shift from investors to owner-occupiers over time. But what most investors will sell are the third rate properties, with poor fundamentals and demand. But in tightly held Melbourne suburbs where families compete for quality homes, demand may remain strong. So, do not expect properties in the inner 30km ring to crash. Suburbs right up to Glen Waverley, Wheelers Hill, Rowville, Wantirna, etc, are seeing strong demand. And strong demand is expected to remain, as there are other potentials. The bigger impact may be on poor-quality investment stock. Where properties are perpetually in an oversupplied situation, the Tarneits, Meltons, Clydes, Pakenhams.. And frankly, that stock deserved a wake-up call anyway. Expensive houses with good fundamentals will appreciate more, while the poor performing suburbs will continue to lag. Rental crisis in inner ring suburbs will continue to soar, as investment properties are sold to home buyers, reducing rental stock. Rents in the current oversupplied new estates will continue to lag and may crash, as investors, attracted by negative gearing, start turning to these locations. This will worsen the oversupplied situation, and likely lead to poorer rental yields. 10. The real lesson: buy quality, not tax deductions This Budget is a wake up call on lazy investing. Tax benefits is no longer a valid reason you invest in properties. If a sales or marketing agent is still spruiking tax benefit (even for new builds), RUN! You now need proper investment advice, not from the sales and marketing agents, but from independent property advisors. And yes, many charge between $1000-$2000 for the review and advice. Be wary of free advice. If its free, you are the product being sold. A strong property investment should have: a good location; strong demand; scarcity; quality land component; rental appeal; long-term resale appeal; sensible cash flow; and a clear reason why someone else will want it in the future. That is what creates real wealth. Do not invest simply for tax benefits, negative gearing, CGT discounts. What is the Good News for Investors? There is some good news for investors: not everyone will be affected in the same way. The biggest impact is likely to fall on individual investors buying established residential investment properties after Budget night, particularly those who previously relied on negative gearing losses to reduce salary or wage income. Some investors may be less directly affected, including those investing through company structures, commercial property, or business assets. Companies, for example, generally do not receive the 50% CGT discount, so the removal or replacement of that concession may have less direct impact on them. However, discretionary trusts need careful advice. They are not automatically outside the changes, and the proposed minimum tax on discretionary trusts could materially affect some investors from 1 July 2028. The bigger opportunity may be this: if fewer individual investors compete for established homes, well-structured investors with strong cash flow and a long-term strategy may face less competition in parts of the established property market. Important: this is still an area where legislation, definitions and exemptions matter. Investors should model the numbers carefully before assuming any structure is “safe” or unaffected. Why these Budget Changes Are Good To be honest, these budget changes is actually a good thing. Property investing is not dead. But lazy tax-led investing is. The disciplined investors who survive and thrive from here will be the ones who buy better, model properly, structure carefully. In other words, the boring disciplined investors who look at numbers and do their research are the ones who will be smiling. And when developers finally realise their sales and marketing agents can no longer use "negative gearing" as the sole reason to sell properties, they will start build properties that buyers want to live in, at sensible prices. Final thoughts The 2026 Federal Budget is a major shift for Australian property investors. Negative gearing is being redirected toward new housing supply. The CGT discount is being replaced with a different model. Discretionary trusts are being pushed toward a minimum 30% tax outcome. And this means: For existing investors, this is a review moment. For future investors, it is a strategy reset. For family trust users, it is time to speak to your accountant before making any big moves. But the core rule remains unchanged: A good property bought well is still a good property. The difference now is that investors may have less tax cushioning when they get it wrong. And in a market like Melbourne, where the gap between a great asset and a dud can be massive, proper due diligence matters more than ever. The new tax system may forgive fewer mistakes. The market certainly won’t. Also read: Top 5 myths of the 2026 Budget Changes https://www.conciergebuyersadvocates.com.au/post/2026-budget-property-investing-myths-negative-gearing-cgt-trusts Budget 2026 Changes. Impact to the Property Market, What it means for property buyers and investors: https://www.conciergebuyersadvocates.com.au/post/2026-budget-property-market-property-market-impact Disclaimer This article is general information only and should not be relied upon as tax, legal or financial advice. Property investors should seek advice from a qualified accountant, tax adviser, solicitor, financial adviser or licensed property adviser before making decisions based on the 2026 Federal Budget announcements.

The 2026 Federal Budget has created plenty of noise and uncertainty in the property market. The announcement plus the hundreds of speculations prior to the announcement hasn't helped either. The 2026 Budget has announced significant changes to: Negative gearing. Capital gains tax. Family trusts. Bucket companies. New builds. Established homes. If you are not sure what they are, read our guide to the Budget 2026 changes here. There is a lot to digest. And as usual, when tax, politics and property get thrown into the same pot, the result is not always a clean soup. It is more like a hot pot of half-truths, sensationalised headlines and confident opinions from people who probably should have read and understood the Budget papers first. For property investors, especially in the often talked about Melbourne market, the key question is not just what is changing. It is also what is being misunderstood. What are the truth, and what are just outdated rumours or sensationalised news from property spruikers? Because misunderstanding these changes could lead to poor decisions. Selling too early, buying the wrong asset, overpaying for a new build, or assuming an old investment strategy still works exactly the same way. Our buyers advocates had spent quite a bit of time understanding the budget, and will now cut through the noise, and explain what is happening. Bookmark and share this to your social page so you have a instant reference page, whenever you need. We'll clarify the... Top 5 myths about the 2026 Federal Budget and property investing. Myth 1: Negative Gearing Is Being Abolished This is probably the biggest and most misunderstood change. The myth says: “Negative gearing is gone.” The truth is: Negative Gearing is still very much alive, with some tweaks. Tweaks to Negative Gearing is being proposed in this Budget. The Budget says the Government will limit negative gearing for residential property investments to new builds from 1 July 2027. Existing Negative Gearing arrangements remain unchanged for: Investment properties held before Budget night (12 May 2026); and Investors who buy eligible new builds. Investors of established properties after Budget night, can still negative gear, but the process is different. That is very different from the myth suggesting negative gearing is dead. What is really happening is that negative gearing is being redirected. The Government is trying to push tax support toward new housing supply, rather than encouraging investors to compete with first-home buyers for established homes. For established residential properties bought after Budget night, losses are still be deductible. Not against your unrelated income, but against residential property income. Unused losses can be carried forward to future years, but they cannot be offset against unrelated income such as wages. Example Let’s say James earns $180,000 a year and buys an established investment property in Melbourne after Budget night. The property brings in $35,000 in rent, but after interest, rates, insurance and other expenses, it costs him $50,000 a year to hold. That creates a $15,000 loss. Under the old rules, James may have been able to offset that $15,000 loss against his salary. Under the proposed new rules, the established property is affected by the changes. He generally cannot use that loss to reduce his salary tax bill. Instead, the loss may be carried forward or used against residential property income or residential property capital gains. So negative gearing is not gone. But for many future established-property investors, the immediate tax benefit is reduced. That is the real story. Myth 2: Existing Property Investors Are Affected and Will Sell Immediately The myth says: “If I already own an investment property, I’m in trouble.” The Truth is: The Budget says existing arrangements will remain unchanged for properties held before Budget night. That means existing investors are generally not affected by the new rules overnight, and any suggestions of investors immediately selling their properties because of the change is just fake news. Existing investment properties are not affected at all, and if they sell, it will, more likely than not, be due to the asset itself, rather than the negative gearing changes. This is important. A retrospective change would have created serious investor panic and voter backlash. Instead, the Government has drawn a line between existing holdings and future purchases. That does not mean existing investors should ignore the changes. It means they should not make rushed decisions based on headlines. What existing investors should ask If you already own an investment property, the smarter question is not: “Should I sell because the Budget changed?” The better questions are: Is this still a quality asset? Is the holding cost manageable? Is the rental demand strong? Does the property have good resale appeal? Would I buy the same property again today? Does this property still make sense under future tax settings? That last question is brutal, but useful. If the answer is no, the issue may not be the Budget. The asset is the issue. Myth 3: The 50% CGT Discount Is Simply Gone for Everyone The myth says: “The 50% CGT discount is being removed completely, and everyone loses.” The Truth is: The Budget says that from 1 July 2027, the Government will replace the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains. The official Budget site explains that investors will only pay tax on their real capital gain, with the reform applying to gains arising after 1 July 2027. That means the change is not simply “50% discount gone, everyone worse off, game over”. The way CGT is calculated is changing, and in some cases, it is better, while worse in other cases. The old system gave a simple 50% discount if the asset was held for more than 12 months. The proposed new system adjusts the cost base for inflation, then applies a minimum tax framework. Example Let’s say Mei bought an investment property for $900,000 and sells it years later for $1.4 million. Ignoring buying and selling costs, the raw gain is $500,000. Under the old 50% CGT discount, only $250,000 may be taxable. Under the proposed indexation system, the cost base may be adjusted for inflation. If the indexed cost base becomes $1.1 million, the real gain may be closer to $300,000. Depending on the numbers, inflation and the investor’s personal tax position, the result may be better or worse than the old method. The key point is this: The CGT system is changing, but the outcome will depend on the asset, the ownership period, inflation and the investor’s tax profile. This has some impact on the property market over the next 12 months, and we will cover this in our next article on how these changes will affect the property market. Myth 4: New Builds Are Treated the Same as Established Properties The myth says: “All investment properties are being treated the same.” The Truth is: Wrong. New builds are being treated more favourably. The Budget clearly favours eligible new residential properties. The Government says negative gearing will be limited to new builds from 1 July 2027, and investors who buy new builds can still deduct losses from other income. The CGT advantage. Investors in new builds will be able to choose either the 50% CGT discount or the new arrangements when they sell, and obviously investor will pick the one which taxes less. The Government is effectively saying: “If you want better tax treatment, invest in new housing supply.” That makes policy sense. But it does not automatically make every new build a good investment, and this is where investors need to be careful. A new build can still be a bad asset, and it usually is in an inferior, compromised location. A poor-quality new build can still suffer from: inflated developer pricing; weak land component; high body corporate fees; oversupply risk; poor resale demand; generic design; weak owner-occupier appeal; limited long-term capital growth. A tax benefit does not turn a weak asset into a strong one. The tax benefit probably recognised these compromises, and is designed to make the weak asset look slightly prettier in a spreadsheet. And let’s be honest. There are reasons why experienced investors avoid new builds. Favourable tax position simply removes one of the reasons. Example Anna is considering two properties. Property A is a new apartment in a high-supply investor-heavy precinct. Property B is an established townhouse in a tightly held Melbourne suburb with strong owner-occupier demand, good schools, scarce supply and strong resale appeal. Depending on your investment timeline and goals, while Property A may receive better tax treatment, Property B may still be the better long-term asset. Investors should not let tax rules override property fundamentals. While tax incentives can be a sweetener, fundamental asset quality should is usually the deciding factor. Tax incentive can change overnight, but asset fundamentals don't. Always ask why are incentives needed to encourage buyers. Myth 5: Family Trusts Are Now Useless The myth says: “Family trusts are dead.” The truth is: No. Discretionary trusts are not being abolished. But tax minimisation loopholes are being tightened. Family trusts serves many purposes and they are still valid, even without the tax "benefit". Your accountant or solicitor should be the best person to advice if family trusts are still valid for your situation. In the Budget, the Government will introduce a 30% minimum tax on discretionary trusts from 1 July 2028, with some exceptions. The trustee will pay the tax, and beneficiaries other than corporate beneficiaries will receive non-refundable credits for the tax payable by the trustee. The Government says this is designed to better align the tax paid on trust income with the tax rates paid by wage and salary earners. This means the benefit of distributing income to low-tax beneficiaries may be reduced. It may also affect some bucket company strategies. Example The Chen Family Trust earns $100,000 in taxable income from investments and business activities. Previously, the trustee may have distributed income across adult family members on lower tax rates, reducing the overall tax paid by the family group. However, under the proposed minimum tax rules, the trust income is intended to face at least 30% tax. So if you had used trusts for the sole purpose of income splitting, the benefit may be reduced. But it might be too late to change the structure. Changes in ownership structures would usually trigger stamp duties, CGT, and potentially move you to the new CGT and negative gearing structure. But that does not mean the Family Trust is useless. Trusts are still useful for: asset protection; estate planning; family wealth planning; business succession; risk separation; holding long-term family assets. A trust is a legal structure, and it should have a proper reason for existing. It is unfortunate that investment spruikers have suggested abusing the family trusts structure to push income to low-tax beneficiaries. And that loophole has been tightened. If your trusts had been established for broader legal, commercial or family reasons, its role is still unchanged. But if you are one of those who had used Family Trust to minimise taxes, it might be too late to change now. Changes can trigger stamp duties, CGT, and put you onto the new CGT and negative gearing rules. The Real Lesson for Property Investors The biggest lesson from the 2026 Budget is simple: The tax system is becoming less forgiving of lazy property investing. For years, property spruikers have convinced lazy investors into buying average assets because the tax benefits softened the pain. The property lost money each year? Negative gearing helped. The property was held for long-term growth? The 50% CGT discount helped. The family trust distributed income? That may have helped too. With those advantages are being reduced, redirected or tightened, investors need to focus more heavily on the fundamentals. A strong investment property should have: quality location; land value; scarcity; owner-occupier appeal; strong rental demand; sensible cash flow; long-term resale strength; infrastructure access; good school and lifestyle drivers; disciplined purchase price. In Melbourne, this matters enormously. Not all suburbs are equal. Not all streets are equal. Not all properties in the same suburb are equal. A property in good suburbs such as Glen Waverley, Mount Waverley, Doncaster, Box Hill, Oakleigh, Bentleigh, Camberwell, Brunswick or another strong Melbourne market still needs to be individually assessed properly. The Budget, in fact, emphasised importance of property fundamentals. It increases their importance. What Melbourne Property Investors Should Do Now Investors should not make rushed decisions. But they should review their portfolio and strategy. 1. Review existing properties Ask whether each property still deserves a place in your portfolio. Investigate the property, not the tax outcome. 2. Model future purchases under the new rules Do not assume old calculations still apply. For future established residential property purchases, the after-tax cash flow may look very different. 3. Be cautious with new builds Do not rush into buying new builds. While they may receive better tax treatment, these incentives probably exist for a reason. And there are also many reason why experienced investors are NOT buying them. Asset quality is key, when it comes to investing avoid buying a poor asset just because of tax incentives. Tax incentives can change overnight, but the property fundamentals don't. Ask the thousands who bought EVs because of preferential taxes, despite the inconvenience and concerns raised by experienced motorists. 4. Review trust structures If you use a family trust, discretionary trust or bucket company, speak to your accountant or tax adviser. This is not something you should DIY. Trust tax mistakes can cost you hundreds of thousands in taxes and stamp duties. 5. Buy better The margin for error is getting smaller. Lazy investing is gone. Investors need to be more selective, more disciplined and more evidence-based. That means understanding value, not just price. Final Thoughts The 2026 Federal Budget does not kill property investing. It kills lazy tax-led investing. Negative gearing still exists, but the rules have changed and new builds enjoy a slightly better advantage. The 50% CGT discount is not simply disappearing overnight, but the capital gains tax framework is changing. Family trusts are not dead, but income-splitting benefits are being tightened. New builds may receive better tax treatment, but they still need to be good assets. Established properties are not suddenly bad investments, but investors will need to be more disciplined when buying them. At Concierge Buyers Advocates, our view is simple: Tax benefits should support a good investment. They should never be the justification to buy. The tax rules can and do change overnight, but the fundamentals of good property selection do not. The investors who do well from here will be the ones who buy carefully, avoid overpaying, and choose assets that stand on their own merits. Because in the end, the market can be brutal to bad investing solely for tax benefits. It rewards quality assets bought well. FAQs Is negative gearing being abolished in Australia? No. Negative gearing is not being completely abolished. Under the 2026 Federal Budget proposal, negative gearing for residential property will be limited to new builds from 1 July 2027. Existing arrangements remain unchanged for properties held before Budget night. What happens to negative gearing for established investment properties? For established residential properties bought after Budget night, losses will generally be deductible against residential property income and can be carried forward. However, investors will not be able to deduct those losses against unrelated income such as wages. Are new builds still negatively geared? Yes. The Budget says investors who buy eligible new builds will still be able to deduct losses from other income. What is changing with CGT? From 1 July 2027, the Government proposes to replace the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains. Can new-build investors choose their CGT method? Yes. The Budget says investors in new builds will be able to choose the 50% CGT discount or the new arrangements when they sell. Are family trusts being abolished? No. Discretionary trusts are not being abolished. However, from 1 July 2028, the Government proposes a 30% minimum tax on discretionary trusts, with some exceptions. Should property investors still buy in Melbourne? Yes, but with more discipline. Melbourne property investors should focus on quality locations, scarcity, land value, rental demand, owner-occupier appeal and long-term resale strength. Tax benefits should never be the main reason for buying a property. Disclaimer This article is general information only and should not be relied upon as tax, legal or financial advice. Property investors should seek advice from a qualified accountant, tax adviser, solicitor, financial adviser or licensed property adviser before making decisions based on the 2026 Federal Budget announcements.

The internet is thriving with news that overseas buyers have been property shopping in Australia, and in particular, Melbourne. But why this interest in Melbourne properties? Why are overseas investors buying up properties in Melbourne? What do they know that you don't? How do you get started? What do you need to know? As an overseas investor, if you've been planning to invest in Melbourne properties, you would have come across FIRB, and you're also probably aware of how the different types of residency status affects what you can and cannot buy. You'll also be aware of some possible additional stamp duties which are applicable to your situation, depending on your residency status and the type of properties you are intending to invest in. If you would like more information on these, follow these links: Foreign Investment Review Board (FIRB) Residency status and what you can buy Additional Stamp Duties In Melbourne and Victoria, an additional stamp duty of between 3% and 8% are imposed on non-residents purchasing properties in Victoria. More details here. But is this something an overseas property investor should be worried about? No, is the short answer. But why no? Here are the facts. Property investment is for the long term Most property investors typically hold their investment properties for between 10-15 years, or longer, if the property is performing well. Unlike other forms of investment such as shares, currency speculation, unit trusts, etc, property investing has a relatively high entry and exit cost. Compared to these other types of investment as well, the lead time to buy and sell properties are typically months, instead of hours. There are also a lot more due diligence checks to be done when buying properties. You need to pick the right property, with the right condition, at the right price, in the right location and with the right tenants. Every property is unique, even if they are built by the same developer, there are always something unique about each property that makes it different from the one next door. That's why savvy investors invest in the services of independent in-country buyer agents to prevent them from buying a dodgy property. Other considerations for a non-resident As we've mentioned earlier, you'll need to be aware of the purchase process for a non-resident. The FIRB process, as well as what you can and cannot buy, depending on your residency status. There is also a purchase stamp duty which varies by state. We'll be discussing this stamp duty in Victoria context, and how this stamp duty affect or doesn't affect for a property in Melbourne, Victoria. It will take weeks to discuss how stamp duties impact purchases in different region in different state, as this stamp duties varies by state, and each region in the states perform differently. It is yet another reason why successful investors engage the services of a good in-country property advisor. Stamp Duties in Melbourne and Victoria The standard stamp duty for property purchases in Victoria is approximately 5.5% of the value of property. It is levied for all property purchases. As a non-resident, you may be required to pay an additional stamp duty of between 3% to 8% of the value of the property, depending on your circumstances, what you purchase and when you purchase. There are certain situations where you might be exempted from paying this additional stamp duty. Now, 8% may sound a lot, but it is not something most savvy investors are concerned with. At least, not for the next 6 to 12 months. Our overseas investor clients can attest to that. Why is this not an issue for these investors? These investors have researched the Australian market and saw the upcoming boom, and they are setting themselves up to reap the rewards. Here's what we are seeing: 1. Consistent Growth in Melbourne Properties For the last 30 years (1988-2018), Melbourne property prices have been growing an average of 7% annually. During some good years, growth of between 10% and 20% annually are not unheard of. At an average of 7%, property prices doubles every 10 years! Not many other investment vehicles give you this kind of consistent growth. On this fact alone, the additional stamp duty of up to 8% will be recovered in just over 1 year. Official numbers for 2019 has not been release yet, as they were being finalised when COVID-19 forced a delay in the release. Melbourne prices have been consolidating for the last 2 years (2018-2019), and at the second half of 2019, it rose a phenomenal 15% before COVID-19 forced a slow down in the property sales. If you were to look at the 30 year performance chart below, Melbourne right now, is at the tail-end of the consolidation phase and Melbourne is entering the BOOM phase. Melbourne is currently in similar periods as 2007-2008 and 2010-2012, where Melbourne property prices grew between 15% to 20% annually. The patterns are similar: slow-slow-boom, slow-slow-boom! It definitely points to BOOM time for Melbourne properties. If this happens, you could be looking to recover your 8% stamp duty in 6 months! 30 year Melbourne Property Prices 2. The recovering Australia Dollar The Australian Dollar has been relatively low, compared to other major currencies. But it is not going to stay this way for long. With China's economy recovering, and China buying Australian natural resources, the Australian Dollar is set to rise. And this is backed by analysis of the AUD performance against USD and SGD. Chart analysis of the Australian Dollar (AUD) against US Dollar (USD) and Singapore Dollar (SGD) both points to a recovering Australian Dollar. And the Australian Dollar looks set to recover to around AUD 1.00 : SGD 1.05. An upside of about 8%. It is a bit uncertain against the USD, due to the political uncertainties in the United States, but we would expect a similar 8% recovery. 10 year AUD vs USD 10 year AUD vs SGD Advantages of buying properties in Melbourne Now, when you combine the 7% annual growth in Melbourne property prices and the recovering AUD; plus, if you hold the property for 10 years of compounded growth, you stand to gain more than double what you invest. An investment of $500,000 today, could be worth over $1 million in 10 years time. This is why our overseas clients have no qualms investing in Melbourne properties. They are preparing themselves for the imminent boom in property prices and the Australian Dollar. The clients who had trusted our opinion and had bought when the Australian Dollar sank to an all time low (March and April this year), are now smiling, as the AUD had appreciated almost 25% from its low. Their properties are now worth about 18% more on average, in 2 months! It definitely does pay to engage the right independent, in-country property buyer's agent to buy the right property at the right price, in the right location. Melbourne Property Outlook So, what is the outlook of the Melbourne property? Follow our blog and like and follow our Facebook and Linkedin pages for the latest news. We provides regular updates, outlook and forecast on the Melbourne property market. How can our Melbourne property concierge service help you? Prices of Melbourne properties range from $400,000 to well over a few million dollars. Each type of property caters to different buyers and investors. If you are interested in buying the right property at the right, find out why our clients are engaging the services of Concierge Buyers Advocates. Have a look at our success stories. Find out about their experience and testimonies. Get in touch, for more information.

"Off-market" properties have become increasingly popular among property buyers, especially with those wanting to seek the best deals or hoping to have a better chance of getting into a tight property market. If you're in the market and searching for exclusive opportunities, chances are you would have come across the term "off-market" properties. But are they truly the best option for buyers? Or are they just sneaky marketing? In the competitive and cut-throat real estate landscape, having the right support from experienced property advisors, such as independent buyers advocates is crucial. These property buying experts have insider knowledge and access to genuine exclusive off-market listings that are not publicly advertised. This gives buyers a significant advantage in finding hidden gems and securing properties before they hit the market. In our decades of property buying advocacy experience, we've noticed some troubling facts about these "off-market" properties. The term "off-market" has been misused or abused by sales agents and marketers, leading to confusion among property buyers. While genuine off-market properties can indeed offer great opportunities, not all properties labeled as "off-market" are worth pursuing. Most that you receive direct from sales agents and project marketers are just properties being sold unadvertised for a sinister reason. To safely navigate this complex landscape and ensure you're making the best investment decisions, it is essential to know what you are buying and/or work with trusted buyer advocates who is genuinely on your side and have a proven track record of securing the best off-market deals. With their expertise and guidance, you can uncover real hidden opportunities and secure your dream property without the stress and uncertainty of the open market. What is an Off-Market Property? In the strictest sense, an "off-market" property is a property that is not actively being advertised or sold to the general public. In some cases, the owner may be considering selling but has not yet launched a campaign. In other cases, they may not have formally decided to sell at all. Over recent years, however, the term “off-market” has been misused and abused to describe almost any property that is not listed on the major property portals. That is where buyers need to be careful. A genuine off-market opportunity can give buyers a real advantage. It usually mean less competition, a quieter negotiation, and the chance to secure a property before it reaches the open market. But not every so-called “off-market” property is truly off-market. In today’s market, many properties promoted as “off-market” are simply pre-market listings, agent database listings, stale listings, or developer properties being dressed up as exclusive opportunities. Some are useful. Some are average. And most are marketing fluff in a nice suit. This article explains the different types of off-market properties, which ones are genuine, which ones are questionable, and why buyers need to be cautious when sales agents and marketing agents start waving the “off-market” flag. We will also show you how to identify real off-market opportunities, how to avoid the fake ones, and where buyers can actually find these properties. Both the good, the bad, and the heavily polished overpriced properties. But first, let’s break down the different types of “off-market” properties and separate the real off-market from the fakes. What are the different types of Off-Market Properties? Generally speaking, at Concierge Buyers Advocates, our team of buyers advocates and buyers agents categorise the "off-market" properties into 3 main types. These are: Type A - Properties which are not selling. Type B - Properties which are sold willingly, and often, not advertised openly. Type C - Properties which are selling, but not advertised openly. Type A - The Off Market Properties Which the Owners have no-firm plans to Sell Type A is the genuine off-market properties which the vendors are either not selling, or have no firm plans to sell. These are the properties which offer buyers the best buying opportunities. No one, or not many buyers, know they might be selling. You could walk pass one, and do not even know you can buy it. These type of off-market properties are everywhere. But almost 99% of them are not for sale. And it is the agents' job to persuade the owners to sell. The genuine off-market properties are usually the most rewarding to buy, and takes the longest time to buy. Type B - The Unwilling Off Market Properties Some of the Type B "Off-market" properties are sold as the vendor does not want the publicity of a public listing. But most of these Type B "Off-market" properties are the ones which we would usually call Distressed Properties. These are the properties which must be sold, due to the circumstances the owners and vendors are in, but are unwilling or unable to openly advertise them, for privacy, security, or many other reasons. These could be court orders, divorce properties, deceased estates, mortgagee-in-possession properties, etc. There is a genuine reason why they must sell, but they are not advertised openly in the usual public boards, due to one concern or the other. Type C - The Fake Off Market Properties Now, Type C, is the fake "Off-market" properties. These are the ones, which the owners, vendors or developers are actively selling, but had chosen not to advertise. The majority of these Type Cs are being sold through sales agents, property investment spruikers or "property investment strategists". And they are being actively used to trap unwary buyers, that they have "privileged access" to some rare and "profitable" properties. When a real estate sales agent approached you with an "off-market property" or when the public approached sales agents asking for "off-market" properties, it would be one of these fake "off-market" properties, 99% of the time. Compared to Types A and B, the key difference here is, the owners have an intention to sell, and the sales agents would usually have some form of exclusive (or sometimes, open) agreement with the vendor and most of the times the vendors are not interested in selling them at market values. Why aren't all For Sale Properties Advertised? Now, let's take a deeper look at the Type Cs. We further categorise the Type C off-market properties into 3 sub-categories: the opportunistic "Off-markets" - vendors (and sales agents) motivated by opportunity. The opportunistic, greedy vendor and/or sales agents choosing to sell in the hidden market, away from public scrutiny. These are very often the unrealistic vendors who think their properties are worth hundreds of thousands more than other properties in the area, and they do not want to invite their neighbours and public scrutinising and talking about their expectations. the ex-listings - these are properties which were previously listed, but unsold due to an unsuccessful sales campaign, usually due to "unrealistic vendor expectations". Aka, vendors are asking too much for what the proeprties are worth. Agents would usually suggest that these properties be taken off-market, usually after their exclusive sales agreement has lapsed, so the agents can protect their performance reputations and also giving themselves the exclusive opportunity to privately market them as "off-market" properties. the developer stocks - these form the bulk of fake off-market properties. And unfortunately, these make up the majority the so-called off-market properties being sold by sales agents, real estate marketers and new buyers agents. The developers have hundreds and sometimes, thousands of such new properties, and they must sell. Advertising them on the public boards isn't practical, as there are too many combinations. It will be a very expensive advertisement campaign if the agents were to advertise each and every one of them. The Dangers of "Off-market" Properties Types A and B are the legitimate, real "off-market" properties. They aren't available openly for good reasons, and if buyers have access to them, they might be able to pick up some good or unique deals. As with any purchases, always do your due diligence. Not what the sales agent tells you. The Type Cs Off-Market are the ones Buyers Must be Wary Of Throughout the years, we've noticed a few common themes with these Type C fake "off-market" properties. And one characteristics is that the vendors and sellers are not interested in selling them at market prices. In most cases, the sellers are asking for a significant premium above market prices. And these are unfortunately, the types of "off-market" properties being recommended by the sales and marketing people, the property investment "strategists" and new buyers agents to unwary buyers. The agents do not have to hunt for them, they are being distributed freely by property developers and vendors, for these agents to sell on their behalf. They are also almost always offered by the sellers or developers with huge commissions for every property they sell. Someone is paying for the commissions. Guess who? These type C fake "off-market" properties are usually either overpriced or are the types of properties which are oversupplied in the market. There are just too many of these products being built. Buyers are very unlikely to enjoy any growth, and we are never proud to buy one of these for our clients. What do Frustrated Buyers Buy? In the world of real estate, sales agents and marketers possess a keen ability to gauge a buyer's experience and emotional state. They prey on the vulnerability of inexperienced and desperate buyers, recognizing them as easy targets for peddling what we call Type-C "fake" off-market properties. These properties, masquerading as exclusive deals or "off-market" properties, are often marketed as easy-to-buy opportunities, enticing tired buyers with promises of minimal competition and exceptional value. However, behind the facade lies the strategy to exploit the naiveness of desperate and rookie buyers, luring them with false claims of exclusivity and unparalleled opportunities. Trapped in their desperation, buyers eagerly fall for the agent's pitch, believing these properties to be the elusive gems they've been searching for. Unfortunately, they are unaware of the deception at play and the true nature of these Type-C fake "off-market" properties. Driven by the desire to avoid competition, many buyers exclusively seek out off-market properties, assuming they are gaining an advantage in the market. Little do they know, they are merely falling into the trap set by sales agents, who eagerly present them with Type-C properties instead of genuine off-market opportunities. It's imperative for buyers to exercise caution and discernment when navigating the real estate market, especially when it comes to off-market properties. By understanding the tactics employed by unscrupulous agents and marketers, buyers can protect themselves from falling victim to the allure of Type-C fake "off-market" properties. Stay vigilant and informed, and remember, not all off-market properties are created equal. How do Type C Fake Off Market Properties come about? The sales and marketing people are not to be underestimated. Most are smart and very opportunistic. Don't get me wrong. They work hard for the money. Just don't question their ethics. When approached by a seller who holds unrealistic price expectations for their properties, sales agents would often suggest marketing these properties as "off-market" properties. Although they are labeled as "off-market", it is important to note that these are not the genuine "off-market" properties in the true sense of the term. Owners have every intention to sell. It is on the market to sell, but they are asking for very unrealistic prices. These are the "fake" off-market properties. Unfortunately, these are often the type of "off-market" being released to the unsuspecting and inexperienced buyers, when they asked for "off-market" properties. Why are Properties sold as "Off Market" Properties often Overpriced? Eventually, one would have noticed these Type-C "off-market" properties are often severely overpriced properties. And there is a reason for this. In addition to allowing them to promote these properties as "Off-market" properties, the sales agents achieve 3 things: They Avoid Public Scrutiny. When a property is openly advertised, the market can judge it. Buyers can compare it against recent sales, competing listings, suburb medians, etc. Because these are usually very overpriced, people notice and will question it. But when the property is quietly circulated as an “off-market opportunity”, it avoids that same level of public scrutiny. There is no public listing sitting online for weeks. There are fewer awkward questions about why the vendor’s expectations are miles ahead of the market. In other words, the “off-market” label is often used to make an overpriced property feel exclusive, when in reality it is just an expensive, overpriced property. They avoid questions on why these properties are so much more expensive than others in the market. They Protect the agency's reputation. Overpriced properties are difficult to sell. They often sit on the market for a long time, attract limited serious interest, and eventually need a price reduction. In some cases, they are withdrawn from the market altogether. That is not a great look for the selling agency. By keeping these properties off the major public real estate portals, agents can avoid the public embarrassment of a property sitting online for months, failing to sell, or eventually selling well below the advertised price. It allows the agency to maintain the appearance of strong results and responsible pricing, while still testing inflated vendor expectations behind the scenes. Put simply, if the price is too ambitious, it is much easier to hide the evidence when the property was never publicly listed in the first place. They use Buyers to Test the Market. Some “off-market” campaigns are not really designed to sell the property immediately. They are used to test buyer appetite. The vendor may not be fully committed. The price may not be realistic. The agent or vendor may simply be gathering feedback and offers to work out whether the market will support the vendor’s expectations. This is where buyers need to be especially careful. An unsuspecting buyer may think they are being given a private opportunity, when in reality they are being used as a pricing experiment. If offers are received, the vendor may use those offers as a benchmark before launching a proper public campaign later. We have often seen properties promoted quietly as “off-market”, only for buyers to later be told the property is “no longer available”, and reappear online weeks later as a public listing. Sometimes, it is even listed by a completely different agent. That tells you everything. This “off-market” approach was not always a genuine selling opportunity. It was market testing dressed up as exclusivity. Where can you find the genuine "off-market" properties? So where can you find the real deal "off-market" properties? Well, that depends on which types of "off-market" properties you are looking for. In general, here are where you can find them: Type A - Genuine "off-market" properties Bulk of these properties are actually not available for sale. However, buyers advocates with the right skill-sets would be able to find them, and negotiate a purchase outcome. Our Platinum buying plan focuses on helping buyers find and buy the real off-market properties. This premium service may take a few months to a couple of years to find and negotiate an outcome. In one instance, we spent almost 2 years acquiring one such property in Glen Waverley. Type B - Unwilling "Off-Market" properties Buyers Advocates would be able to access them. Most of the times, there could be some legal or court orders on these properties. In blue chip areas, agents would typical list these properties for auction or sell by "set date". It is believed that selling them opening is the right way to extract market value for these properties. However, in locations with poor demand, these would usually be sold unadvertised through buyers agents or buyers advocates, as this is usually the most efficient way of selling. They do not pay any selling and advertisements costs, and because our buyers are all qualified and ready to buy the right property, it usually means it is a definite sale if we've a suitable buyer. Our buyers advocates are often approached by vendors and / or their legal representatives for buyers for these properties. Although we understand the buyers unfortunate predicament, we believed in running a ethical business, and doing the right thing morally. We would not undervalue such properties. We would never take advantage of someone's unfortunate circumstances. We would kindly ask a buyer to look elsewhere if they insist on taking advantage of any unfortunate circumstances. No apologies here. Type C - Fake "Off-market" properties These are the easiest to find. The "off-market" market is flooded with these fake off-market properties. These fake off-market properties make up over 90% of the "off-market" properties. Ask any sales agent, and they would have lists of catalogs for you. They are also available through the so-called "property investment strategists", who are no more than real estate marketers. They sell you a get-rich investment dream, but it could easily be 5 to 10 years before you realise you had bought a nightmare. Many buyers ended up losing hundreds of thousands, as the combination of high rental management fees, high body corporate fees, and negative growth turned these properties into major money pits. Remember, over 99% of these are priced well above market value. As with any properties, buyers should always do your due diligence. This is especially true with these Type C fake "off-market" properties, to avoid being taken for a ride. If you want an independent assessment of the property you are being sold, talk to one of our independent buyers advocates. We can help provide you with an independent, unbiased assessment of the property you are interested in. Good properties are seldom sold off market. It limits their sales potential. Do Concierge Buyers Advocates have Off Market Properties? Yes, we do. We were often approached by agents and marketers offering these "off-market" properties as well, but we always vet and qualify these properties, before making any recommendations. We assess the property, appraise the property and if the price is within expectations, we grade and classify these properties. 99% of these properties are rejected as they were either oversupplied, irrelevant, or too expensive for what they are, to be honest, which prompted us to write this article. We will only match the property to buyers if they are relevant and suitable for them. We would not want to waste the buyer's time. We do occasionally come across a few good ones though, so, if you are keen, do get in touch. 90% of off market properties are either fake or overpriced. Type B genuine off-market properties are the ones we tend to receive from real estate agents, the vendor's solicitors, or court orders. Real estate sales agents know, as industry experts, our experienced buyers advocates can tell a genuine off-market from the fake ones, and they would not want to damage their professional reputation by sending us fake off-market properties. They are, thus, usually on-point with their recommendations. Type A Off-market properties are available through our Platinum Buying Plan, where our emphasis is on exclusivity. We have to custom search using a expert techniques, to find and access them. Our buyers are usually the only one or one of the privileged few who has access to them. If you are in the market to buy your property and interested to know if any Off Market properties is suitable for you, or just want to have a chat about this article, do feel free to get in touch. More home and investment property buying news and tips here.