🎙️Dave, Cate and Mike unpack the immediate investor reaction to the negative gearing changes and the trends emerging in their wake. The trio start broad: Are investors genuinely rethinking strategy in favour of yield over growth, or is this just serviceability and higher rates forcing their hand?

📊 Cate shares what she’s hearing from buyers week to week, and how seasoned investors are approaching the market differently to newer ones entering it for the first time. From there, Mike walks through why resi investors are increasingly looking at commercial property, small retail, offices and warehousing, and why a headline yield on a commercial asset doesn’t behave the same way it does on a house. Leases, lending, tenant dynamics and vacancy risk all work differently once you cross into commercial territory, and the trio ask what an empty commercial property can actually cost an owner while it sits there.

🏡 It’s a wide ranging look at negative gearing fallout, including a switch by many to yield-chasing and commercial property, and ultimately, whether alternative yield strategies are a rational response to the market or a trend people are chasing without fully understanding what they’re taking on.

And….. our gold nuggets!

Cate Bakos’s gold nugget: Investors who are making sudden changes to their property investment strategy should talk to a financial planner or qualified professional to ensure they are still investing in an asset class suited to them

Mike Mortlock’s gold nugget:”Yield to me is really just the serviceability; our ability to play the game.”…..” But the game is… capital growth.”

Dave Johnston’s gold nugget: Dave reminds listeners that media noise and confusion can frazzle buyers. Slowing down, and making decisions in a logical way is imperative to success. Dave walks listeners through the decision-making steps for success, in chronological order.

Related episodes:

Ep. 53           Diversification 101 – How and why to plan for diversification within your property portfolio

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

Ep. 61           Commercial property – Part 1: The risks and the rewards!

Ep. 63           Commercial property – Part 2: Determining value, Real Estate Investment Trusts, Warehouses, Mixed Use, Leases, and more

Ep. 270        How to Build a Diversified Investment Portfolio – Aligning Personal Goals with Timing, Age & Inheritance

Upcoming ep: #379: Market Update