<\/p>\n
Property mogul, Eddie Dilleen, bought 30 properties before he was 30 to create a buffer between his childhood in housing commission and adulthood. Picture: David Swift<\/p>\n
A 100-home investor who grew up in housing commission has warned federal budget changes could deepen Australia\u2019s housing divide, entrenching advantages for existing landlords and hitting younger buyers hardest.<\/p>\n
Dilleen Property founder Eddie Dilleen said the changes would reshape investor behaviour.<\/p>\n
\u201cThis is the biggest property shake up in history in terms of a rules and regulations change from the government,\u201d he told The Courier-Mail. \u201cI see this is a tax grab from the government which is idiotic.\u201d<\/p>\n
MORE: Horror 5 rate hikes warning for Aussies<\/a><\/p>\n No escape as 5-week mortgage hike wave sweeps Australia<\/a><\/p>\n Eddie Dilleen (pictured with his wife Francesca) now own over 100 properties, working the favourable Australian tax and borrowing environment.<\/p>\n He said any move to grandfather existing investors would widen the gap between those already in the market and those trying to get in.<\/p>\n \u201cGrandfathering them absolutely separates the people that are already in the market compared to the people that are not in the market and pushes them even further apart,\u201d he said.<\/p>\n \u201cMeanwhile people that already own tens or hundreds of investment properties are all protected. I am\u2026 one of those that got in before the proposed changes.\u201d<\/p>\n He said that would leave new entrants at a disadvantage.<\/p>\n \u201cDefinitely, if they grandfather then it\u2019s just new people that want to invest in property that are hurt, not existing property investors. Unfortunate for new investors, but it is what it is.\u201d<\/p>\n He argued the result would be a system that favours established investors.<\/p>\n \u201cSo if anything, it\u2019s hurting the people that are just getting started \u2013 that want to build a property portfolio or maybe buy an investment property to help fund their retirement in the future.\u201d<\/p>\n MORE: $25K hidden nightmare lurking in Aussie homes<\/a><\/p>\n Shock warning as Aussies pay fortunes for homes that fall apart<\/a><\/p>\n Mr Dilleen bought this five bedroom duplex in Brassall in Qld (4305) for $410,000 in March 2020.<\/p>\n Mr Dilleen has written a couple of books documenting his experience and sharing tips that changed people\u2019s lives. Picture: Tim Hunter.<\/p>\n Housing Minister Clare O\u2019Neil, speaking in an ABC interview Monday night, said Australia\u2019s housing system was facing long-term pressure, particularly for younger Australians with \u201cserious intergenerational issues\u201d in housing.<\/p>\n She said younger Australians were facing very different challenges to previous generations with the government\u2019s \u201cmain game\u201d being to increase housing supply.<\/p>\n Asked about possible changes to housing taxation, including negative gearing and capital gains concessions, she said she would not foreshadow Budget decisions or confirm any specific tax settings.<\/p>\n Seeing one of his Perth\u2019s properties for the first time after having bought it sight unseen.<\/p>\n A four bedroom home at Bowen Mountain was added to his portfolio with its 1.220sq m block for $570,000 in October 2019.<\/p>\n Mr Dilleen said he did not believe the reforms would improve housing affordability, arguing government intervention often had unintended consequences.<\/p>\n \u201cGenerally I think when the government tinkers with policies, all they end up doing is pushing prices higher,\u201d he said.<\/p>\n \u201cIf they focused on how they can increase supply that would probably help a lot more, such as re-looking at the approval process for building dwellings and making that easier and less painful \u2013 that would make developers build more property.\u201d<\/p>\n \u201cEvery time in history as far as I\u2019ve studied and seen throughout my property investment journey, any time governments have messed with policies, they\u2019ve always made things worse.\u201d<\/p>\n He said policy changes of this kind often flow through to rents and supply.<\/p>\n \u201cWhen changes like this happen, there\u2019s always flow-on ripple effects such as increased rents, as many investors put their rent up to compensate the losses.\u201d<\/p>\n \u201cIf less people end up selling because they don\u2019t want to get stung with tax, then less stock\u2019s on the market \u2013 which could mean even more demand for the stock that is on the market.\u201d<\/p>\n He bought this three bedder at Elizabeth South for $130,000 in 2013 and last asking rent was $285\/W during the pandemic.<\/p>\n He bought this six bedroom duplex for $640,000 in Morayfield which had been fetching $233\/w rent each in 2015.<\/p>\n Despite uncertainty around the budget, Mr Dilleen said property would remain one of Australia\u2019s strongest long-term wealth-building vehicles.<\/p>\n His advice to younger buyers was simple.<\/p>\n \u201cI would say buy immediately with urgency,\u201d he said. \u201cWhen we look back in 5\u201310 or 20 years, the price you pay today will seem cheap as hell.\u201d<\/p>\n \u201cWe live in a place that needs inflation around 2 or 3 per cent, so look at any property you\u2019re buying now and calculate how much that will be worth in the next 20 years \u2013 even just off inflation alone and it will be well over double the price.\u201d<\/p>\n \u201cRegardless there will always be a way to invest in property in Australia,\u201d he said.<\/p>\n \u201cIt will always be worth it because you can leverage into a property asset and the bank will lend you 80 to 90 per cent of the value \u2013 which is a far better leverage perspective than investing in shares.\u201d<\/p>\n When his personal borrowing maxed, he turned to buying within superannuation rules, picking up this townhouse in Woodridge where prices have since doubled.<\/p>\n","protected":false},"excerpt":{"rendered":"Property mogul, Eddie Dilleen, bought 30 properties before he was 30 to create a buffer between his 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