Australia’s negative gearing rules have changed, but there’s one important opportunity that has received surprisingly little attention. For those who owned their home before 12 May 2026, you may still be able to access grandfathered negative gearing benefits if that home later becomes an investment property.

In this episode, Cate, Dave and Mike unpack what this means for homeowners, why loan structure matters just as much as property selection, and how today’s repayment decisions could have a lasting impact on future tax outcomes.

The trio explores why more Australians may choose an “upgrade and retain” strategy, or even rentvesting, instead of purchasing a new established investment property. They also explain the role of interest-only lending, offset accounts and preserving deductible debt, while highlighting the importance of working with a strategic mortgage broker who understands long-term property planning.

You’ll also hear the potential pitfalls of interest-only lending, including repayment shocks at the end of an interest-only period and why proactive planning is essential.

If you already own a home, this episode could reshape the way you think about your next property move. It’s a timely discussion on strategy, lending, cash flow and making informed decisions in a rapidly changing property landscape.

…. and our gold nuggets!

Dave Johnston’s gold nugget: Be proactive! Review your loan, review your structure, and make sure your lending still supports where you are trying to go, and discover what it looks like should you convert the current home into an investment property.

Mike Mortlock’s gold nugget: There is no guarantee that this legislation will be repealed, and these are the new rules of the game. Understanding the new ecosystem is important for investors and owner-occupiers.

Cate Bakos’s gold nugget: Being comfortable with good debt is essential for anyone thinking about applying this option via their owner-occupied home conversion to an investment property. The challenges for buyers who have elders suggesting they pay down the debt are real, particularly if parents have assisted with the initial purchase.

Download your free copy of Dave’s Money Management Principles – the 7 Steps to Success: https://www.propertyplanning.com.au/money-management-principles

Related episodes:

Ep. 128        Upgrading and planning for the long-term home: how to keep a home as an investment, buying or selling first and more.

Ep. 184        Interest only vs Principal & Interest – Why working through the different considerations could add millions to your nest egg at retirement

Ep. 230        Equity Unleashed: Property Planning & Borrowing for Renovations & Wealth Creation

Ep. 264        The Ultimate Guide to Rentvesting – How to Unlock Property Potential in High-Cost Cities to Create Your Ideal Lifestyle

Ep. 250        Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation

Upcoming ep: #370 – June 2026 monthly market update