You can watch the YouTube video here.

The new budget has completely changed the property game. Is it pushing investors towards riskier decisions?  

Welcome to uncharted property territory.  

With borrowing capacity tightening and the negative gearing changes reshaping household cash flow, some investors are turning towards cheaper properties, higher yields, new builds and even commercial property just to remain in the market. But when does adapting become compromising?

In Episode 616 of The Property Couch, Ben is joined by Couch Crew, QPIA Polly Chu, and Mortgage Broker Luke Oxenham to unpack the decisions investors face in this uncharted environment. 

Together, they explore why chasing yield can come at the expense of asset quality, the risks of buying property simply for the sake of staying active and why the right decision for some Australians may be to invest outside residential property altogether. 

The key message? Don’t compromise on quality simply to keep buying. 

Sometimes one or two exceptional properties, combined with super, can do more for your financial future than a large portfolio of compromised assets. Listen now, folks.  

 

Free Stuff Mentioned

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Timestamps

  • 00:00 — 616 | Why Chasing Yield Could Cost You – Q&A Day 
  • 02:03 — Housekeeping: Case Studies, PRE-Purchase Series + We’re Hiring 
  • 05:58 — Q1: Is the Budget Pushing Investors into Worse Property? 
  • 09:11 — The Lending Changes Slashing Borrowing Power  
  • 12:35 — When Is Property No Longer the Smart Move?  
  • 15:00 — The Sudden Commercial Property Gold Rush  
  • 17:42 — Who Really Profits When You Chase Yield?  
  • 22:12 — AI Can Build Houses—But It Can’t Create Land  
  • 24:51 — Is Live-Vesting the New Property Playbook?  
  • 26:43 — Q2: Would You Sacrifice Your Dream Home for a Tax Break? 
  • 32:44 — The CGT Trap Hidden in the Decision  
  • 35:14 — The Emotional Decision 
  • 37:16 — Q3) Your Offset Is Full. Don’t Make This Mistake  
  • 38:15 — How Paying Down Debt Could Backfire  
  • 45:34 — What If Your Home Is Your Best Investment?  
  • 49:24 — Q4) Have You Lost Your Grandfathering?  
  • 52:55 — The Negative Gearing Myth Investors Still Believe 

 

Questions We Answer

Q1 from Anonymous

“Has the budget changed the type of property that investors are purchasing?” 

Q2 from Anonymous 

“We currently own two investment properties that would be grandfathered under the proposed negative gearing changes.  

We recently renovated one of them with the intention of moving in, making it our principal place of residence and paying down the loan faster through a debt recycling strategy.  

However, after running the numbers, it appears we may be financially better off continuing to rent where we live, keeping both properties as investments and potentially purchasing a different home in the future.  

In the changing environment, would it make more sense to retain both properties and preserve their negative gearing benefits, or proceed with our original plan to move into the renovated property?”   

Q3 from Anonymous 

“I’m planning to upgrade my home in the next two to three years, and the offset account attached to my current home loan is already full.  

In the meantime, should I use my extra cash to start paying down the debt on one of my two investment properties, or keep it accessible in a savings account for the future home purchase?  

I know the money won’t work as hard sitting in savings, but I’ll need access to it when I’m ready to upgrade.” 

Q4 from Venkat 

“Hi Polly,   

Hope you are well. We watched your podcast before, it was great.   

I had a question after hearing the budget 26-27. I purchased an IP in Sep-23, in Dec 25 I moved into the property and it’s my PPOR now.  

If I move to a rental and make this into an IP will I be covered by negative gearing changes.   

I am not asking for tax advice, I thought if you or the couch crew can cover this question in his podcast it would help thousands of people like me.   

Many thanks.”