Ep 420: Can anything make property investing attractive again after the tax changes

Read Full Blog HereWith the negative gearing and CGT changes now law, the property industry is racing to devise workarounds to keep investor interest alive. As a genuinely independent, asset-class-agnostic firm with no bias toward property, Stuart puts six of the most likely strategies under the microscope, because to a man with a hammer, everything looks like a nail.The starting point: under the new rules, the after-tax internal rate of return on established property falls from around 11% to 8.4%. Can any lever claw that back? Stuart works through chasing a higher rental yield (and why starting gross yield is what matters), gearing less to reach neutral (which, counterintuitively, drags returns lower), and using a company structure to preserve deductions (a Part IVA minefield). He examines new-build dwellings that retain the old concessions, small-scale development, and high-yield specialised property like NDIS and co-living.His verdict is refreshingly blunt: none of these currently stack up, and commercial property looks overpriced too. The real lesson? When someone promotes a clever workaround, check whether they have a vested interest, and remember property was never the only game in town.Our most popular free guides:Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes.Download them hereMy new book, Wealth by Design, is out now:Buy online or in bookstores. The ebook is available now, audiobook coming soon.Got a question for the podcast?Email us at [email protected] in working with our team?Discover how we can work togetherSubscribe to my weekly blog:Stay connected hereImportantThis podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.