{"id":662704,"date":"2026-05-10T23:15:10","date_gmt":"2026-05-10T23:15:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/662704\/"},"modified":"2026-05-10T23:15:10","modified_gmt":"2026-05-10T23:15:10","slug":"rents-will-skyrocket-expert-warns-negative-gearing-changes-will-hurt-younger-australians-not-help-them","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/662704\/","title":{"rendered":"\u2018Rents will skyrocket\u2019: Expert warns negative gearing changes will hurt younger Australians, not help them"},"content":{"rendered":"

A multi-millionaire property investor who owns 25 properties is blowing up about the negative gearing changes, even though he will keep his tax concessions.<\/p>\n

News.com.au reported on Sunday<\/a> that the changes will be fully grandfathered, which means they will not impact existing investors.<\/p>\n

New property investors will still be able to negatively gear a property, but only if it is a new build, not an existing apartment or home.<\/p>\n

Daniel Walsh, a buyer\u2019s agent and founder of the consultancy Your Property Your Wealth<\/a> who owns 25 homes, warned that it will hit younger voters, not help them.<\/p>\n

\u201cI think that rents will definitely have to skyrocket, like we already saw this in the Keating era, where they went up last time they did this with negative gearing,\u201d he said.<\/p>\n

\u201cSo exactly the same thing is going to happen. It may take a couple of years for it to pan out. It\u2019s not going to be instant, but that will happen.\u201d<\/p>\n

Negative gearing is a tax strategy where an investment property\u2019s expenses including interest, repairs, and rates exceed the income it generates, creating a loss that owners can deduct from their income taxes.<\/p>\n

The author of 6 Principles to Retire Younger & Richer, Mr Walsh, said the government\u2019s changes would be a disaster.<\/p>\n

\u201cOlder generations have given them these benefits to be able to get wealthy,\u2019\u2019 he said.<\/p>\n

\u201cEveryone\u2019s climbed that mountain, and then, technically, now the young people that are trying to also replicate what maybe their parents have done, they\u2019ve just pulled the ladder up on them.\u201d<\/p>\n

The decision to grandfather the changes means around one million boomer and Gen X property investors who are currently negatively gearing are sitting pretty, but younger Australians looking to \u2018rent-invest\u2019 will be locked out of negative gearing unless they purchase a new property.<\/p>\n

The changes will end negative gearing as we know it, however, for future investors, unless you are prepared to buy a new home and add to the supply of homes.<\/p>\n

For existing housing stock, negative gearing is over, unless you already have your foot in the door before budget night.<\/p>\n

Mr Walsh, who admits the grandfathering leaves him personally better off, said he was more concerned about the hundreds of thousands of younger clients he works with. <\/p>\n

He said the vast majority of his clients are under 35 and use rent-vesting \u2013 renting where they want to live and investing where they can afford \u2014 as the only viable path to eventual home ownership.<\/p>\n

\u201cHouse prices got so expensive that most young people can\u2019t get into the market where they live, so they end up renting in expensive areas and investing throughout the country in areas they can afford,\u201d he said.<\/p>\n

\u201cThey\u2019re hoping those investment properties go up in value so they can sell them and use the proceeds as a deposit on a family home. I have seen thousands of clients do that \u2014 clients as young as 18.\u201d<\/p>\n

Mr Walsh said the policy fundamentally misunderstands how younger Australians are now navigating the housing market, and that restricting negative gearing to new builds would strip away one of the few remaining tools they had to build wealth.<\/p>\n

\u201cThe government is so far behind on this,\u201d he said. <\/p>\n

\u201cThey think everyone has the ability to save enough money every single year to eventually have a deposit to go buy their two-and-a-half million dollar home. <\/p>\n

\u201cThey don\u2019t. There\u2019s no possible way for that to happen.\u201d<\/p>\n

However, The Barefoot Investor has told critics<\/a> to \u201cstop whingeing\u201d in his Herald Sun column, insisting the current system was stacked against younger Australians.<\/p>\n

Finance guru Scott Pape said claims by some investors that the changes would create a \u201ctoxic mess of pain and devastation\u201d were overcooked.<\/p>\n

\u201cI\u2019m not sure if you\u2019re from the housing lobby, the Liberal Party, or if you\u2019ve just stumbled onto my column for the first time in 22 years and haven\u2019t worked out that I\u2019ve spent the better part of two decades arguing against negative gearing and every other form of taxpayer-funded landlord welfare,\u2019\u2019 he said in response to a reader\u2019s letter.<\/p>\n

\u201cFor far too long, first home buyers have had the footprints of investors on their backs.<\/p>\n

\u201cA toxic mix of pain and devastation? Please.\u201d<\/p>\n

He said his sympathy for landlords who would be thrown into financial peril by the changes was limited.<\/p>\n

\u201cIf that\u2019s what happens to your investment portfolio after a few tax tweaks, you\u2019ve got bigger problems than I can help with,\u201d Mr Pape said.<\/p>\n

\u201cIf they\u2019re that skint, they should sell their homes immediately and get out of the market while they still can. They don\u2019t own their home. The bank does.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"A multi-millionaire property investor who owns 25 properties is blowing up about the negative gearing changes, even though…\n","protected":false},"author":2,"featured_media":662705,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,689,320034,99,320035,320042,320031,164,320038,29980,320040,70229,62562,42086,10940,264221,320043,10928,320045,677,320033,77591,320036,48452,320044,271115,320041,320039,320037,320032,28539],"class_list":["post-662704","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-australia-and-new-zealand","tag-budget-movelandlords","tag-business","tag-changes-means","tag-daniel-walsh","tag-dollar-home","tag-economy","tag-eventual-home-ownership","tag-family-home","tag-finance-guru","tag-home-buyers","tag-income-taxes","tag-jim-chalmers","tag-liberal-party","tag-looming-changes","tag-multi-millionaire-property-investor","tag-negative-gearing","tag-negative-gearing-changes","tag-oceania","tag-property-expert","tag-property-investors","tag-retire-younger-richer","tag-scott-pape","tag-stop-whingeing","tag-tax-concessions","tag-tax-tweaks","tag-taxpayer-funded-landlord-welfare","tag-treasurer-jim","tag-wealth-founder-daniel","tag-young-people"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/662704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=662704"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/662704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/662705"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=662704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=662704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=662704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}