Dave, Cate and Mike are back this week, unpacking the ongoing impact of the Federal Budget through the lens of a thoughtful listener question from Liam. A few weeks on, the initial shock may have settled slightly, but the uncertainty remains very real, and it seems to be shaping behaviour across the property market.

The conversation opens with a shared observation that sentiment has shifted quickly, particularly among investors. With proposed changes to negative gearing and capital gains tax still not legislated, many prospective investors are pausing, reassessing and, in some cases, stepping back altogether. Cate notes that while this has created unease for investors, it has also opened a window of opportunity for owner-occupiers. With fewer active bidders at inspections and auctions, conditions have become more favourable for those looking to secure a home.

Liam’s question captures a broader concern: have these policy changes removed a key pathway into property investment for those who aren’t quite ready yet? The trio acknowledges that this “kick in the guts” sentiment is widespread, particularly among younger buyers who had planned to use strategies like rentvesting to get ahead.

Dave and Mike explore whether this shift could lead to a temporary increase in listings, as investors consider selling ahead of potential tax changes. However, the consensus is that while sentiment can change overnight, property markets don’t move with the same immediacy. Listings, pricing and supply tend to adjust more gradually, and structural undersupply remains a dominant force.

As the discussion deepens, the focus turns to strategy. With reduced tax advantages likely, investors will need to be far more disciplined. Cash flow, borrowing capacity and risk buffers are no longer secondary considerations, they are central to decision-making. Mike highlights the need for buyers to fully understand their financial position, while Cate emphasises the importance of thinking laterally, including exploring regional markets or properties with stronger rental yields.

What becomes clear is that this is a period of recalibration. The rules may be shifting, but the fundamentals of property investing remain. Supply constraints, population growth and long-term demand continue to underpin the market.

For those willing to stay informed, adaptable and measured in their approach, this evolving landscape may present opportunities that are less obvious, but no less valuable.

…. and our gold nuggets!

Cate Bakos’s gold nugget: Do you jump in quickly before the herd or do you wait for policy changes? Cate suggests that waiting for clarity has merit.

Mike Mortlock’s gold nugget: “The best time to buy was yesterday, but I still think sentiment holds true”. Mike talks about the power of sentiment, and the opportunity that presents for buyers now.

Dave Johnston’s gold nugget: Dave implores investors to consider their buffers, and agrees with Mike that the proposed legislation isn’t likely to get any worse. He echoes that this could well be the best time to buy. Dave also suggests that rental income is likely to increase….

Related episodes:

Ep. 22           Why the family home is often the biggest piece of the investment puzzle

Ep 56           The great debate! Capital Growth V Cash Flow – Which investment strategy is superior?

Ep. 58           Off the plan purchases – Everything you need to know. Part 1: purchase through to settlement

Ep. 59           Off the plan purchases – Everything you need to know. Part 2: The financial drivers

Ep. 60           Why established properties outperform

Upcoming ep – 365: How to save money on your home loan