PHOTO: FILE
The Little-Known Strategy Some Investors Are Using To Sidestep Negative Gearing And CGT Changes
As governments continue to target property investors through tax reforms, many Australians are wondering whether property investing still makes sense.
For one Brisbane family, the answer was simple: adapt the strategy, not the goal.
A Queensland couple has built a portfolio of four investment properties in just two years using a property investment approach that could help shield them from some of the most significant federal budget changes affecting future investors.
Their story highlights a growing divide between investors who understand the changing rules and those who may find themselves locked out of opportunities in the years ahead.
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🏠 How One Family Built Four Investment Properties In Two Years
Everton Hills couple Lene and Kacey Inu were like many Australian families.
Raising four children and struggling to get ahead financially, they found themselves living week-to-week while making only minimum repayments on their home loan.
The turning point came when they decided to take a more disciplined approach to budgeting and investing.
Working alongside financial advisers, the family purchased four investment properties within just two years, including one property through a Self-Managed Super Fund (SMSF). All of the properties were newly built or under construction.
The strategy wasn’t based on luck.
It was based on understanding where the property market and tax rules were heading.
Lene and Kacey Inu became investors to pay off their home mortgage, using a plan that would sidestep any CGT and negative gearing changes. Pictures: Adam Head
📈 Why New Builds Are Becoming More Attractive
One of the biggest talking points in Australian property right now is the future of negative gearing and Capital Gains Tax (CGT).
Under proposed federal changes, many investors purchasing established properties may face reduced tax advantages compared to those available today.
However, newly built properties continue to enjoy several advantages.
These include:
✅ Continued access to negative gearing benefits
✅ Strong depreciation opportunities
✅ Potential government incentives
✅ Appeal to tenants seeking modern homes
For investors entering the market today, new builds may offer a pathway that remains largely unaffected by proposed restrictions targeting established housing stock.
💰 The CGT Bombshell Facing Some Property Owners
Research referenced in the report highlights just how significant future Capital Gains Tax changes could become.
In some Brisbane suburbs where property values have dramatically outperformed inflation, investors could face substantial increases in future tax obligations.
One example cited was New Farm, where an investor holding a property for 35 years could potentially face an additional CGT liability of approximately $644,000 under the proposed system.
That type of figure is forcing many investors to rethink their long-term strategies.
Investing in newly-built property allows for landlords to continue negatively gearing their new homes, despite planned changes to the federal budget.
🏦 The SMSF Advantage
One component of the Inu family’s strategy involves property held through a Self-Managed Super Fund.
SMSFs operate under a different taxation framework and were not directly impacted by the proposed changes outlined in the federal budget.
For some investors, this creates additional flexibility when planning for retirement and long-term wealth accumulation.
However, SMSFs are highly regulated and require specialist advice before implementation.
📊 The Bigger Problem: New Investors May Struggle
While experienced investors often find ways to adapt, some industry experts believe future generations may find entering the property market increasingly difficult.
Financial strategist Rachael Howlett believes upcoming changes will require investors to undertake far more detailed analysis before purchasing property.
Gone are the days when investors could simply purchase a property and rely on tax incentives to make the numbers work.
Future investors may need:
- Better financial advice
- Stronger cash flow management
- More detailed property analysis
- Greater understanding of taxation structures
- Long-term investment planning
Ms Inu said their best property decision was speaking to professionals about the best way to manage their money before jumping into an investment. Pictures: Adam Head
💡 Budgeting Remains The Secret Weapon
Perhaps the most interesting aspect of the family’s story wasn’t the property purchases themselves.
It was their budgeting discipline.
According to Lene Inu, the family has maintained essentially the same budget for two years, allowing them to redirect surplus cash toward wealth creation rather than lifestyle spending.
The lesson is simple.
Many successful investors focus just as much on cash flow management as they do on property selection.
🚨 What Investors Should Consider Before Buying
As tax rules evolve, investors should carefully consider:
Property Type
New build or established?
Ownership Structure
Personal ownership, trust or SMSF?
Cash Flow
Can the property survive higher interest rates?
Exit Strategy
How will future CGT changes impact returns?
Professional Advice
Are you receiving independent, qualified guidance?
These questions may become increasingly important as the investment landscape changes.
🔮 What Happens Next?
The proposed federal budget changes are expected to take effect from July 2027.
If implemented, they could fundamentally alter how future investors approach residential property.
Some investors will adapt.
Others may delay entering the market altogether.
What appears increasingly clear is that the investors who understand the rules, seek quality advice and plan ahead are likely to be in a much stronger position than those relying on strategies that worked in the past.
📍 Property Noise View
Property investing isn’t dead.
But it is changing.
The days of blindly chasing capital growth and relying on tax benefits are becoming increasingly risky.
Future winners are likely to be those who understand structure, cash flow, taxation and long-term planning.
For many investors, the biggest opportunity may not be finding the next property hotspot.
It may simply be understanding the rules better than everyone else.
SOURCE: NEWS.COM.AU