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532 | Hold or Sell? How to Decide if Your Property Is Worth Keeping

How can you create a financial buffer WITHOUT impacting your family budget?

Are you wondering if your underperforming property is worth keeping? (Here’s the key reason why you should be asking, “Will the banks like it?”) 

And are property finfluencers manipulating the market?  

Folks, after a ripper Summer Series we’re BACK for 2025 and kicking off the year with a Q&A session answering your most pressing questions and giving you golden strategies that’ll allow you to act now.  

PLUS… we’re revealing major upcoming projects!
🔥 Our THIRD book, How to Retire on $3K a Week (and how to get first exclusive access!)
🔥 Huge Moorr upgrades to supercharge your money management
🔥 And plenty more insider insights…  

Listen now folks!  


Free Stuff  

  • FREE MASTERCLASS: How To Buy an Investment Property Without Impacting the Family Budget
    As mentioned in Q2, Secret #1 in our free Masterclass teaches you how it’s possible to invest in property without sacrificing important moments today.
    Register for your masterclass now >>
     
  • WAITLIST: Bryce’s 50th Charity Event!
    We’re thrilled to share that all spots for Bryce’s Charity Event have been filled! (by an amazing group of folks) In partnership with the John Fawcett Foundation, this special trip is designed to give those in need their eyesight back – and we couldn’t be more grateful for all the support and interest we received.
    If you missed out but would love to join, simply sign up for the waitlist now! >>
     
  • COMING SOON: “How to Retire on $3K a Week”! 🚀
    After months of hard work, we’re SO excited to unveil our third book – “How to Retire on $3,000 a Week”! Packed with thousands of updated calculations, proven strategies, and expanded case studies, this is your ultimate guide to fast-tracking your passive income through property. Be the first to get your hands on it. Register now for exclusive release notifications and get ahead of the crowd! Join the waitlist today >>
     

 

Questions We Answer

Q1) To sell a negatively geared apartment or to ride out the wave? From Hanh 

“Hi guys.  

My name is Hanh. I’ve been binging on all your podcast episodes since I started researching on the topic of property investment over the last couple of months.   

The reason why I’m leaving you a voicemail is because I can’t seem to find an episode that covers my question, although I do love the learnings that I’ve had along the way so far. A bit of background about me. I’m 46 years old, and I currently live in suburbia Melbourne. I have two daughters, a 5 year old and a 6 year old. I own a studio apartment in Melbourne CBD for the last 20 years.  

It’s negatively geared and it has barely increased in value. I bought it for $315k and the agent currently values it at $380k. I seek financial advice they’re telling me to sell it to avoid further potential capital losses. My financial planner has also told me to cut my losses and to sell it and invest in something else that is more likely to go up in value. Not really sure what to do. My thoughts for this property were to initially live off in retirement, I would give it to my daughters as they get older or sell it if I ever to get sick again.  

In 2020 I was diagnosed with breast cancer so I don’t really have any income protection so in the event if it reoccurs, I would like to keep that as a bit of a buffer or a Plan B should I need it. Now with the government in Victoria capping international students, I feel that it might limit my rental yield and also property market, especially apartments in Melbourne is a bit saturated at the moment.  

I’m not sure if that will change in time, so I’m really undecided as what to do with this property, whether to sell it or to ride out the wave for the next 15 years or so. I’m a bit torn because I wanna like I have high hopes for this property, I’ll be very willing to give it up if there is a better alternative elsewhere.  

If you can help, that would be great. Thanks.”  

 

Q2) Time for taking action from Brad  

Hey Team TPC! 

Having only been referred to your podcast by my colleague (and one of your clients) in March this year, I’m currently working my way past Episode 500 of your podcast. I’ve contacted your team and I am hoping 2025 is the year to ‘act on it!’ (especially since I’m 45 next October)!

My PPOR purchased in 2011 for $315k is currently valued at around $800-850k, with a loan balance of around $345k, with payments of ~$2500/month (after previously refinancing and fully renovating the house internally – added a 4th bedroom, Kitchen, Bathrooms, Tiles, Carpets, Paint etc.)  

After listening to your podcast,  I understand that it’s wise to start on the investment journey with a buffer of at least 6 months worth of savings.

I am currently paying off a car loan ($15k at around $150 a week) and thanks to YOUR MoneySMARTS system, I have been saving (a minimum of) $300 a week since the start of FY25.

With respect to the savings buffer and borrowing capacity, I know that is it wise to pay down consumer debt (i.e. my car loan) first, because the loan period (and therefore the interest paid) will reduce significantly.

My question for the community is:

If I wanted to buy an IP and I was in a position to release ~$280k equity from my PPOR, do I still need to have (recommended) 6 months of savings as a buffer, or can I act SOONER?

I understand that there is a huge opportunity cost of not ‘taking action’ now… and building that savings buffer could take me (and others out there) potentially up to another 2 years before I can act! Apart from taking on another job, (which is definitely not off the cards) I’d be keen for your feedback!

I hope that this question helps others who might be finding themselves in a similar situation.

You are directly impacting the lives of the community AND their loved ones, as a result… Thanks for all of your incredible work!

PS: With a few exceptions to the rule (like Victoria and Canberra) your borderless and well-informed approach to investing really makes some of the “spruikers” out there look like they are generalising on markets, influencing people with intent to benefit themselves!

(As entertaining as finfluencers like GH and JH are, you need not be concerned – they don’t hold a candle to the TPC Team… They are no competition!)”  

 

Q3) Are Property Finfluencers Fuelling FOMO and Market Manipulation? From Jen  

Hi Bryce.  

 Finfluencer follow up….And maybe another question/request for the podcast? 

Here is my question… 

In the battle of the property finfluencers, I can see it comes down to a few investing strategy frameworks – with the top two being; 

  1. The conservative, tried and tested – buy location, then the land and dwelling type, and go long.
  2. The new age “we have found something that the conservatives haven’t” – buy hot spots, ride the short term wave, then rinse and repeat your way to financial freedom.

I can appreciate the compelling story with #2 as it feeds into the notion of get rich quick and feeds the ego with bias around investing in a way that others can’t see.  

For the 2nd model to work, here are two possible constants or constraints (depending on the way you look at it):

  1. Reliance on a buyers agent model that hasn’t been around for ‘long’ which requires said buyers agent to tap you on the shoulder when it’s time to buy and sell in a particular area.
  2. Manipulation of property prices from such buyers agents who have their clients flood into a particular hotspot area within a certain time frame, driving a certain degree of artificial demand and price uplift.

Number 2 is a concern, from the perspective that all the new buyers agents are interpreting the same info from the same data sources yet they think they are the only ones to see it. And then sell these so called ‘insights’ to their followers based off this premise… ‘we are doing something and seeing something that others aren’t’. 

But in true terms, it’s a younger, wider movement based on all the same data sets, which leads to FOMO and possible sub market price manipulation.”

 

Timestamps  

  • 0:00 – Hold or Sell? How to Decide if Your Property Is Worth Keeping  
  • 1:18 – Thank you to our inspiring Summer Series guests! 
  • 4:03 – Mindset Minute: Approaching 50 does something to you… 
  • 8:38 – Incoming Projects: Our third book, huge upgrades to Moorr & more… 
  • 15:57 – Q1) To sell a negatively geared apartment or to ride out the wave?  
  • 19:27 – Why not invest in Studio Apartments?  
  • 24:00 – Owner-Occupier appeal is EVERYTHING.” 
  • 25:05 – You need to ask, “Will the banks like it?”  
  • 28:14 – How to escape the loss aversion trap  
  • 30:55 – Q2) Time for taking action 
  • 33:53 – How professionals would unpack this problem 
  • 35:30 – Using equity to act sooner: Is it a good idea? 
  • 36:20 – Do you need a buffer?  
  • 38:42 – Don’t look down: How to redefine how you see debt! 
  • 41:21  Masterclass Secret #1: How to adjust your family budget to release surplus 
  • 41:37 – Q3) Are Property Finfluencers Fuelling FOMO and Market Manipulation? 
  • 43:47 – How GameStop’s short squeeze is the same as property spruikers 
  • 48:16 – The 10,000 hours matter…  
  • 52:54 – Are you buying into a cyclical or fundamental movement?  
  • 57:48 – Thank you to this week’s question-askers & 2025 Property Market Outlook at the end of the month!   

And… 

  • 58:36 – Lifehack: How to use AI to get your kids to do homework!  
  • 1:01:37 – WMPN: Climate risk is growing; what does it mean for insurance? 

 

520 | Should You Take Property Advice from a Financial Planner?

Folks, Episode 520 is not just another massive Q&A Day on the couch, but today’s episode has us responding to the rawest feedback we’ve EVER received. 🤯 

Plus, you’ve heard our about property investing journeys. But what about today’s true story from Trevor, who backs up everything we said about failing to retire on $2K per week?!  

You’ll have to tune in to find out how he gets out of this sticky situation. 


In this episode, you’ll hear:

  • Why TPC listener Gabriel opposes calling property investors “small business owners” 📈 
  • Capital Gains Tax: Has the AFR proven us wrong? 🤔 
  • Should you take property advice from a financial planner? 🏡 
  • How do birthdays and curing blindness overlap? Tune in at 19:45 to find out. 👁️  

It’s a ripper episode folks. Give it a listen now!  


Free Stuff  

  • Australia’s FIRST property AI is now LIVE!
    Ask your burning questions, and Opti, The Property Couch’s own AI, will scour our entire catalogue – we’re talking all our courses, books and 500+ episodes – to find the answer. To try it, simply text click here to start the conversation on Whatsapp or scan this QR code:

Opti QR Code

  • UPCOMING WEBINAR: MoneySMARTS 2.0 release!
    7:30pm AEDT, Tuesday, 26th November 
    Get ready to meet your new, ultimate money management tool in Moorr, designed to make managing your finances simple, effortless, and effective.  
     
    Join Bryce, Ben, and Moorr’s Product Manager, Alric, as they walk you through the powerful new features of MoneySMARTS 2.0 and share practical tips to make your money work harder for you! Register for the webinar here >>  
  • Want to join our team?
    Empower Wealth is on the hunt for a Chief Operating Officer! If you, or someone you know, is passionate about leading a team of professionals dedicated to helping aspiring Australians achieve their financial & personal goals, then we want to hear from you! Apply today >>  
  • Give the gift of sight!
    May 2025
    Next year, Bryce turns 50! To celebrate, he’s hosting a special charity event in Bali to fund life-changing eye surgeries for those in need. Join the TPC crew in Bali for 3 days, during which you’ll witness transformative eye surgeries up close and be part of a property investing mastermind session!

    Partnering with the John Fawcett Foundation, your support will provide glasses, eye medicines, and free cataract surgeries, transforming lives through better vision. We have just 12 spots available. If this is something you’d like to be a part of, find out more or register your expression of interest here!
  • Get on Bus #1 (Listen to 50:45 for some background 😉)!
    In line with Helal’s question, work with Empower Wealth, our team of Qualified Property Investment Advisors (QPIA). Speak to an award-winning team today >>

 

Questions We Answer

Q1) Feedback on Episode 515 – Negative Gearing from Gabriel  

Hello, 

Firstly thanks so much for all the work you are doing for giving an alternative to some of the media rhetoric on this topic.  Can I offer a couple of points as constructive feedback after listening to the episode.  

While it provided a lot of good points to consider, I think there is an opportunity to rethink a couple.  

Firstly on the history of capital gains tax, while you said that it replaced existing arrangements, you failed to mention the important point that it is more generous that its predecessor and that there is scope for scaling it back. The AFR in their Fin podcast mentioned that CGT was worth $25B a year vs $2B for negative gearing. It was meant to encourage investment in businesses and instead turbo charged property.  

Secondly I find you calling property investors small business owners irritating, and if this is a sentiment shared by many others I wonder if it could be detrimental to the cause of changing the public opinion of ‘greedy investors’.  

While I own an investment property myself, I would never introduce myself as a ‘small business owner’ based on that. I own an asset that serves a great social purpose of housing Australians, but this is not a business where I create something new out of time, creativity and resources.  

The asset is already there, built by an actual business. It’s managed by another business – a property management agency and it’s maintained by other businesses like tradies.  

I don’t have an ABN and don’t need one. If I owned shares which ultimately give capital to listed businesses so they can invest and grow the economy, would I call myself a small business owner? 

Love your work (still!) 

Regards,
Gabriel 

 

Q2) Role of financial advisor in property investing from Helal 

Hi, I hope you are doing well.  

I have a question about the role of a financial advisor and the services that you provide. From what I understood from listening to the podcast is that the financial advisor cannot advise you to go looking, or advice about properties, is that correct?  

If not, what should we do? Do we go through a financial advisor first and then decide whether we want to go into property with them going with the financial advisor’s plan? 

 

Q3) How to fail to build from Trevor  

Hey Ben & Bryce, 

Just wanted to reach out and say Ep. 480. Guys! This is phe . nom . enal ! I can relate to some if not all of the “how to fail to build” points you raised here.

My true story goes a little something like this. I bought my first house and land package as a PPR just before the GFC hit and after living in it for a year, rented it out because I went off traveling the world in my mid 20s for the next 8/9 years.  

After the real estate agency secured what I thought was a good tenant, I gave them the flick and managed the property privately. Thought it was a great idea to save a few dollars on fees right. Those same tenants moved out 5 years later and I had to replace all the carpets, repaint the walls and replace some fans the kids had swung off of. Needless to say, the bond certainly didn’t cover this.  

I kept the bond and offered the tenants to pay the rest of the bill. Obviously, I heard crickets from them so had to pay the rest out of my own pocket. I had landlords insurance but this is a worst case insurance for me and I never use it to claim small things. It’s just for the “what if the house burns down”.  

You’d think I’d learn right? Wrong.  

I went and got another tenant, funny enough it was the family next door and they were moving out of that house because it was up for sale. I saw an opportunity to save on management fees again and 2 weeks’ rent the real estate would have charged for finding a new tenant. The new family moved in under a private agreement. Sweet as right? 

Nope. After trying to manage this house from a yacht somewhere in the Bahamas (which I worked on by the way, not owned) I found out while doing my own tax return one year that they had underpaid me rent. I had to send them emails and show them spreadsheets from afar of how much they were behind and it was more than 5 grand.  

I thought enough was enough and got a property manager to help sort them out and they did pay me what I was owed and all was fine. But do you know what the kicker is, well it’s not keeping up with what the rental market is doing. I.e. rents around my house had gone up and considerably, but because I was managing this house myself from afar I didn’t have the finger on the pulse.  

After all of this learning, let me tell you fellas… I have now learnt! I maintained a property manager for this house from then on. That lesson had taught me about property management and its importance. What it didn’t teach was having the right strategy in place, and so I sold that house at roughly the 10 year mark (insert palm in face emoji). 

I can wholeheartedly say that the net of the money I saved in management fees over the years was surely a net negative and as you can see to top it off I sold the property and paid commission to do so.  

I can’t bring myself to check the growth of that suburb and what the house would be worth now or even to check what its rental yield would be. For context I sold it in 2022. 

Final point I’ll make on this and for people who may hear this, I wish I got accredited professional help because my future self would have thanked me for it. My wife and I have now got that help through Empower Wealth and we are on a path of retribution.  

I am a dedicated listener to your podcast.  

Keep up the great work!
You guys are my Joe Rogan!
Cheers Trev. 

 

Timestamps  

  • 0:00 – Should You Take Property Advice from a Financial Planner?     
  • 1:29 – Footy banter and Trump’s win  
  • 5:39 – Australia’s FIRST property AI is now LIVE 
  • 9:35 – MoneySMARTS 2.0: Release webinar!  
  • 11:33 – Empower Wealth is hiring a Chief Operating Officer  
  • 14:39 – A heartwarming moment at the Tina Turner concert! Ruva, here’s a shoutout to you 😊  
  • 17:48 – Mindset Minute: “Life is not for complaining about pain and sorrows; it’s about prioritising…”  
  • 19:45 – Bryce’s 50th: Give the gift of sight! 
  • 26:56 – Block Auctions: A reminder it’s not based on real property principles!   
  • 29:51 – Q1) Negative gearing feedback & would I call myself a small business owner 
  • 32:10 – The history of capital gains tax  
  • 34:04 – What makes a small business?  
  • 37:29 – The #1 overarching reason why the property investor narrative needs to change 
  • 39:45 – Framing businesses: Vintage cars and social good 🚗 
  • 43:19 – Negative gearing for… planes?!  
  • 45:05 – Q2) Should you take property advice from a financial planner?    
  • 46:13 – Residential properties aren’t a licensed product!  
  • 50:45 – Bryce’s minibus analogy: Traditional financial planners vs. Investment-savvy financial planners 
  • 54:33 – Why do QUALIFIED property investor advisors (QPIA) matter?  
  • 58:43 – Reach out to us if you want to get on Bus #1!  
  • 1:00:42 – Q3) How to fail to retire on $2K per week  
  • 1:04:58 – Avoid touching the pot!  

And… 

 

517 | “Negative Gearing Needs to Go”: Have Bryce & Ben Changed Their Mind?

“Negative gearing is symptomatic of a dysfunctional & inequitable property market!” 🏚️💸  

Folks, this is a quote from Ash, one of today’s fantastic question ask-ers.  

And if you’re like us and have been fighting tooth and nail AGAINST abolishing Negative Gearing… 🥊✊ 

You can understand why Ben has described this question as one of the top 3 questions he’s ever been asked on the show!  

Tune in to hear Ben and Ash get into the great negative gearing debate and answer – should it be removed? If yes, what are the alternatives??  


Plus, we cover:  

🏆 We’re going against THE Noel Whittaker! Thoughts on knocking residential property and generational attitudes towards wealth-building. 

🏘️  Restrictions on lending: What are the 2 BIG questions to ask yourself regarding borrowing capacity?  

💰 We don’t vouch for most property owners having five properties. Here’s why.  

It’s an episode that covers the hottest topics at the moment; listen in now!  


Free Stuff  

  • One Spot Left in our 2024/25 Summer Series!
    Help us inspire others by coming onto the couch and sharing your journey towards financial peace! We’ve got one spot left, folks. Share your story here >>  
  • Graphs from Ben’s “What’s Making Property News”: Victoria rentals fast declining! Victoria Rental's Falling
  • Guests & Episodes Mentioned: 
  • Want Episode 515 slides + our 3-part Negative Gearing video series? Just fill out the form below, and we’ll send them straight to your inbox!

 

Questions We Answer

Q1) Thoughts on Noel Whittaker’s Path from Jye

Thoughts on Noel knocking property as an investment when that’s your whole philosophy? (and our whole retirement plan 😬)

Q2) Regulatory limitations for borrowing capacity assessment from Ash

Hi guys, love the show. Thanks for all of the great information and value you provide to the community.

My question is on dealing with regulatory limitations around income when being assessed by lenders for borrowing capacity. I currently own 4 investment properties, and I’m in the process of looking to purchase a 5th.

All of the existing properties have done well with appreciation since they were purchased, so I have about $200,000 of available equity. And the properties in the area that I’m looking at are around the $500,000 to $600,000 mark. So I’m theoretically well covered from a deposit perspective.

My employment income is around $220,000 a year gross. And the investment properties that I have, are returning between 7.0-8.0% yield, against their current value.

Other than the investment properties, I don’t have any additional lending or personal loans, and our primary place of residence is provided by my employer. So our family living expenses, for myself, my wife, and our 3 daughters, are relatively low and we have a reasonably well managed budget that we track.

However, when being assessed for my borrowing capacity by my lender for this next property, I was informed that the restrictions imposed following the royal commission, meant that the lender was only allowed to assess the investment properties as having a maximum of 6% yield each, which results in hundreds of dollars a week, not being able to be included within my available income.

That’s on top of the 3% buffer which is also applied to current interest rates for affordability assessment.

All this to say, that my borrowing capacity based on my “income” is well short of the available equity that I have, despite the fact that all of my existing properties are currently cashflow positive.

While I’m confident I’ll be able to arrange my finances to purchase this 5th property, I don’t see an obvious pathway for being able to purchase any more. Short of waiting for further significant increases in the property values and their assessed yields. If you’re able to offer any guidance as to the best way to navigate an imposed affordability constraint, that would be much appreciated

I’d also be really interested in your take on how some people seem to be able to purchase 30, 50, or 100 properties (if you believe the claims on their social media pages and book covers) without running into this constraint.

It would seem that even with cash flow-producing properties, they would surely be running into the same regulatory limitations on income assessment with the 6% yield limit.

Or is there a strategy that I’m completely missing?

Kind regards,
Ash

Q3) Why Australia loves and hates negative gearing from Jim 

Hi Ben and Bryce! 

I’m a big fan of your work and the podcast. Your focus on empowering the community with knowledge about the property industry and sound financial management skills is fantastic. 

Ben, a shout-out also to the very important work PIPA is doing—couldn’t agree more that the property investment industry needs regulation as soon as possible. So, on to my question (or rather, a topic I’d love to hear more about on an episode): negative gearing. 

As a property investor in Australia, I’m going to say something controversial – negative gearing needs to go. I believe it’s a counterproductive policy, but please hear me out, because there’s an important context to this that merits some discussion from experts like yourselves. 

As a starting point, no one should be investing in an asset that consistently costs them money, relying on PI tax offsets and the hope of a future capital gain that may never materialise. 

I’ve heard the justification that negative gearing is just like any other business where investors should be able to offset financing costs, but in my view this logic is flawed.

In a typical business, debt is used to acquire assets that generate positive cash flow and can be paid off. No business willingly takes on significant debt with the expectation of enduring ongoing cash flow losses in the hopes of one day realising a capital gain. 

If someone approached a stock portfolio this way, we’d call it speculative and reckless – so why should property investment be any different? 

Negative gearing is also a global outlier. In most (but admittedly not all) other countries, property investors do not expect or accept being cash flow negative. Yet in Australia, this has become normalised. 

Why? Because the cost of holding property – largely driven by taxes, rates, and other overheads – is extraordinarily high here. And this, in my view, is where the industry needs to be focusing more attention and policy thinking. 

That said, I agree with you that abolishing negative gearing in isolation would cause significant disruption in the already fragile rental market. 

If investors were to exit the market en masse, as many predict they would without negative gearing, the result would be catastrophic. Rental stock would shrink, and rents would surge even further. 

Therein lies the real dilemma: negative gearing has become an essential feature of Australian property investment precisely because of these inflated holding costs. 

You can’t get rid of one without addressing the other. The current structure of property taxation and regulation in Australia has made positive cash flow investment nearly impossible. 

Take the inability of landlords to pass on council rates to tenants, despite tenants being the direct beneficiaries of council services. This issue barely gets a mention – almost as if the industry is suffering from Stockholm Syndrome. 

Another significant factor is the imposition of extremely high state-level land taxes (especially for those investing through a trust). Again, hardly discussed, despite this tax being a major contributor to the unsustainable costs of holding property. 

Meanwhile, negative gearing in isolation is always front and centre in the debate. These issues together are ripe for reform. Unfortunately, state governments are drunk on land tax as a source of revenue and have little incentive to remove it. 

So if negative gearing is to be abolished (and I suspect it will eventually happen), the federal government must step in and reassert control over property taxation and regulation at a national level. 

Reducing holding costs would ease the financial strain on investors and make property investment more viable and cash-flow positive. 

In that scenario, negative gearing would become irrelevant, just as it is in most other countries. Some, including the Green Party, advocate for rent controls to mitigate the potential impact of constrained rental supply if negative gearing were scrapped. 

In other words, why bother addressing holding costs when you can abolish negative gearing and simply prevent landlords from raising rents? 

This might sound attractive to anyone currently locked-out of the property market by high housing costs, but this approach is really akin to trying to catch smoke with your hands and would be a disaster for renters. 

There’s clear evidence from cities like Berlin and Glasgow that rent controls only lead to higher rents at reset points and a tighter rental market overall. 

It would also be deeply unjust to impose such controls after decades of government policies encouraging and incentivising private property investment as the primary solution for rental housing, with governments effectively outsourcing and stepping away from that responsibility themselves.   

Negative gearing is symptomatic of a dysfunctional and inequitable property market. But advocating for its removal or retention without addressing the issue of holding costs is a bit like rearranging the deck chairs on the Titanic – it misses the bigger structural issues threatening the whole shebang. 

What’s needed is a comprehensive overhaul of the property tax system and a rebalancing of investor incentives to align the market with sound economic principles, which will help to protect rental availability and affordability. 

Isn’t this where the industry should be focusing the debate? I’d love to hear your thoughts on this, particularly if you think I’m off base.

 

Timestamps  

  • 0:00 – “Negative Gearing Needs to Go”: Have Bryce & Ben Changed Their Mind?   
  • 1:25 – Download our Negative Gearing video series slides & one spot left in the 2024/25 Summer Series!  
  • 5:22 – Mindset Minute: “This is how most people live their lives”  
  • 7:23 – Q1) Thoughts on Noel Whittaker’s Path from Jye   
  • 8:40 – Why Ben chooses residential property for building wealth 
  • 11:29 – Loss Aversion and how it links to the Pies losing the Grand Final 😉  
  • 12:42 – “There’s no single path to the holy grail.”  
  • 15:26 – Noel happens to live in a beautiful property in…  
  • 17:05 – Ben’s business analogy & Rupert Murdoch’s $150M property  
  • 19:59 – Q2) Regulatory limitations for borrowing capacity assessment from Ash 
  • 22:57 – Throttling investment properties? The answer in short is 100% yes 
  • 26:40 – The 2 big questions for Ash…  
  • 31:53 – Envy Sells: Be wary of these  
  • 33:38 – Folks, only 1% actually make it!  
  • 36:11 – Alternative strategies when regulation limits your borrowing capacity   
  • 38:19 – Q3) Why Australia loves and hates negative gearing from Jim   
  • 44:14 – The political system WON’T reboot the taxation system  
  • 46:09 – The Macro Story: Why are we seeing this?  
  • 49:01 – How it helps the lower-income earners   
  • 50:05 – Why it’s about finding a balance: From wage to workers 
  • 53:53 – “Most people are after power, not legacy.”  
  • 55:35 – What is the alternative to negative gearing? 

And… 

  • 57:14 – Lifehack: Ask for late check-outs from…caravan parks!? 🕰️ 
  • 1:02:04– WMPN: How many properties are available to rent in Victoria?  

 

516 | The Alternatives to Abolishing Negative Gearing (LIVE)

Continuing our LIVE streak, we’re back this week to answer your burning questions on negative gearing and dive into our think tank to drum up EIGHT alternatives to abolishing it! 🔥

Whether you’re curious about how many Aussies are impacted by negative gearing or if it’s possible to get politicians to lift their eyes beyond an election cycle…  

We’re revealing our own list of realistic and actionable solutions to solve our housing crisis, increase density, reduce building costs and much more!  


Here’s what you can expect:  

  • How much tax is generated for the government by positively geared properties? 
  • Eight creative solutions to try BEFORE eliminating negative gearing 
  • How to reduce building costs with cutting-edge technology 
  • Realistic solutions to increase rental supply and affordability  
  • Future concepts to expand and maximise existing infrastructure from pay-to-play to selling airspace  
  • Why properties don’t just disappear! (Tune in to hear Ben forecast rental demand to use the next time you get into that kind of argument around the dinner table 😉) 

For a one-of-a-kind look into how to get more folks onto the property ladder and solve our growing housing crisis, tune in now!


Want last week’s slides + our 3-part Negative Gearing video series? Just fill out the form below, and we’ll send them straight to your inbox!

Free Stuff  

 

Questions We Answer

Q1) Is it a simple as that? From Andrew M

So if 71% (approx. from memory) only buy 1 property and then it quickly declines when you look at 2 and 3 etc. Why do we keep coming back to this argument…is it because it only affects a small amount of people but the rhetoric is good for votes…is it as simple as that?

Q2) How many Australians are affected by negative gearing? From Ashisain

At the end of the day, this is for politics…do we know how many people in Aus are affected by negative gearing? It can’t be substantial enough to affect election outcome.. (individual voters numbers)

Q3) The million-dollar question from Brett A

So the million dollar question is: How do you get politicians to lift their eyes beyond an election cycle?

Q4) How much tax is generated for the government by positively geared properties? From Tyrone P

We know how much negative gearing costs the govt in taxes but do we understand how much tax is generated for govt by positively geared properties? How would abolishing it affect that govt income?

Related graph:

Timestamps  

  • 0:00 – The Alternatives to Abolishing Negative Gearing (Part 2)  
  • 0:43 – Download the slides from Ep 515 | The Truth About Negative Gearing & Capital Gains Tax!  
  • 3:37 – Ep 515 Recap: Everyday Aussies will miss out  
  • 5:28 – Q1) Is it as simple as that?  
  • 8:16 – Who are the people investing in 1 or 2 properties?  
  • 9:53 – Negative gearing is a tax outcome  
  • 11:04 – Q2) How many Australians are affected by negative gearing? From Ashisain & Q3) The million-dollar question  
  • 11:42 – “Elections are all about looking in the margins”  
  • 12:12 – ATO: How many people have seats and are affected by negative gearing? 
  • 13:42 – How have we found ourselves here  
  • 15:05 – Q4) How much tax is generated for the government by positively geared properties?  
  • 16:28 – The net amount of property investors profiting and loss  
  • 20:39 – Think Tank: The alternatives to abolishing negative gearing  
  • 22:50 – The 1% Rezoning Rule  
  • 25:19 – Land Release Scheduling  
  • 27:18 – Higher Density Zoning  
  • 26:16 – Reduce State Gov Taxes & Charges 
  • 32:33 – Land Lease Communities  
  • 36:20 – Household Size Formation 
  • 38:12 – Accessing Super for a Deposit  
  • 40:29 – Reduced Build Costs  
  • 45:57 – Future Concepts: A pay-to-play fee  
  • 48:22 – Selling airspace to increase density  
  • 50:25 – Properties Don’t Disappear: Forecasting rental property demand 
  • 54:17 – Rental Supply & Affordability Ideas
  • 56:25 – Going for granny flats & tiny homes 
  • 57:109 – Ageing and Students: It’s not a room shortage, it’s a housing shortage!  
  • 1:00:27 – Encouraging Build-to-Rent 
  • 1:00:50 – Protecting the public and providing social housing  
  • 1:03:01 – Recap: Knowledge is empowering but ONLY if you act on it. 

 

Download the Slide Deck & Access Our Negative Gearing Video Series

Negative gearing reform has been in the spotlight since 2016, when Labor first proposed changes ahead of the 2016 and 2019 federal elections.

At the time, the proposal was to limit negative gearing to new homes only, while exempting all existing negatively geared properties.

As you can tell, this is a topic we’re incredibly passionate about.

That’s why we’ve produced a short 3-part video series to help you better understand Labor’s Proposed Negative Gearing Policy and its potential impacts. And, following our recent LIVE episode on The Truth About Negative Gearing & CGT, we’re also making the slides from the episode available for download.

In this 3-part series on Negative Gearing, Bryce & Ben cover:

  • What negative gearing really is
  • Why negative gearing is not a strategy
  • Who negative gearing impacts the most
  • Common myths and misconceptions
  • How proposed changes could affect you as an investor, homeowner, or renter

To download the slide deck and gain access to the video series, simply fill out the form below!

 


Plus, don’t miss Episode 231 where we dive into listener questions about the impact of changes to negative gearing.

To be clear:

❌ We’re not anti-Labor.
❌ We’re not saying negative gearing should stay as is.

✅ We believe the numbers need a fresh review with updated data.
✅ We’re advocating for collaboration between experts like the Master Builders Association of Victoria, HIA, REIA, Property Council, Property Investment Professionals of Australia, Property Investors Council of Australia – PICA, and more to craft a well-informed policy.

 

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