Over recent months, I have explained why we are currently underweight Australian shares. Australia represents only a small part of global developed markets; its index is concentrated in a few sectors, and we question its capacity to generate acceptable future returns relative to current valuations. Therefore, we believe that investors should allocate more to global …
I would like to explore a funding strategy that may help investors prioritise investing in the highest-quality property they can afford while managing the cash flow impact of quarantined negative gearing. However, before I explain the strategy, I want to make one point very clear: this is not an attempt to justify investing in established …
Property investors who owned assets before Budget night will continue to benefit from negative gearing. Therefore, most will be reluctant to sell, because if they subsequently reinvest in an established property, they will lose immediate access to those tax benefits. However, given the Melbourne property market’s significant underperformance over the past decade, investors are naturally …
It’s been fascinating to watch how differently asset classes have performed over the past few years. Share markets have generally delivered strong double-digit returns, while others, such as unlisted commercial property trusts and residential property in Melbourne and to a lesser extent, Sydney have really struggled. This is nothing new, of course. All investment markets move in cycles, and a long-term investor should expect periods of …
Before you try to work around these changes, get the full toolkit This blog tests six strategies for keeping property investing attractive after the tax changes. None of them stack up on their own. Our free decision tool goes further: it helps you work out whether to hold, act modestly, or change strategy altogether, and …
Every year, I update my analysis of how to choose the best super fund in Australia. This year I have restructured it, and I think it is the most useful version yet. The guide is no longer just a list of returns. It is built around a simple idea I think most people get backwards. …
I have written about cash flow management several times over the past decade. The reality is simple: you cannot build wealth unless you spend less than you earn and invest the difference (It is the first element in the wealth formula). That is why cash flow management is probably the most fundamental discipline to master if you …
Historically, the big difference between upgrading your family home and preserving borrowing capacity to buy an investment property was negative gearing. Home loan interest is not tax deductible. Investment loan interest, by contrast, generally is. So, from a tax and cash flow perspective, borrowing to invest in property was often more attractive than simply spending more on your …
It now appears likely that the proposed tax changes affecting established residential property will be enacted into law. Given this, I thought it was worthwhile revisiting whether investing in established residential property remains an attractive long-term investment option. The return problem: more cash in, but no higher capital growth Quarantining the negative gearing benefits associated with investing in established residential property materially reduces the attractiveness of investing …
Last Friday, both Houses passed the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026. At the time of writing, the Bill has not yet received Royal Assent, so technically it is not law. However, Royal Assent is generally regarded as a mere formality. Importantly, the practical application of the new rules still depends on several key ministerial decisions that …
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