29/05/2026
Budget Stupidity 101
Rents will rise by $2pw.....
Wrong....!
Rents will rise way more than $2pw, not because landlords are greedy, but because, although Negative Gearing has been grandfathered for existing owners, CGT has not.
So, if I sell my current investment property, my CGT is now being charged in 2 ways. On the old system until 1st July 2027, and then on the value change from 1st July 2027 to when I sell the property.
This would mean I am most likely now paying more tax than I would have paid if it had remained on the old system.
Business 101 states that I should plan for this loss and try to recoup as much of this back as I can, so the only way to do this would be to rasie the rents now, so that I can hopefully make up enough ground to cover my loss when I sell.
To a non-investment property owner, this sounds greedy. But to an investment property owner, it's just business. No different from any other business that raises its prices to stay in business.
These so-called "Rich Landlords" are just trying to stay in business. 95% of people we work with are mums and dads who are simply trying to get ahead. They're trying to pay off their home loan, reduce financial stress, create a better future for their family, and have more choice and freedom in their lives.
The cost of owning property continues to rise. Interest rates, insurance, council rates, land tax, maintenance, and construction costs have all increased significantly over recent years.
For every $50 per week a landlord increases rent, there's a good chance they're absorbing another $100–$150 per week in additional costs themselves.
That's why I tell younger people to rentvest, because you can rent the same home way cheaper than you could buy that home. So rent where you want to live and buy where you can make money.
So simply put, landlords will raise rents way above the projected $2pw, and so they should, as they are running a business, and if landlords can't stay in business, then there will be no rental properties at all.
I guess that would mean nobody would be complaining about rental increases then....
