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Hello, my wife and I have been discussing buying a unit off the plan close to Sydney CBD. The loan have been approved but with the talk about the labour party negative gearing policy is now a good time to buying off the plan or should we look to a place like Newcastle or other regional areas and buying an existing home. Thank you

last year


Hi Matthew

OK this is NOT advice but I really don't think the negative gearing thing will get up anyway. The amount of families with an investment property is small and then the amount with more than one is even smaller and most of them work in Canberra ;)

Also you should never buy a place based on the negative gearing aspect. What happens if you lose your job?

Spend plenty of time looking at places and do some solid research. I bought a unit in London and I saw 52 units before I made a decision. By the time I was ready it took me 5 minutes to decide to buy it. Why? because when you know so much about a topic/area then the decision process it very short.

Good Luck


Hi Matthew,

As Andrew mentioned you shouldn't base the decision around a potential change and just on the aspect of negative gearing.

A property strategy should always be looked at as a long term investment and based on the current climate it doesn't look like we are going to have the same growth as the last few years.

If you are unsure about your options, it is best to speak to a professional either in the property field or someone that can help identify your goals and objectives such as the need for income, investment timeframes or are you after capital growth in the short term etc.

Getting an investment property is a big decision and one you want get right before you make a full commitment.

I hope this helps.


Ronald Pratap
Principal Financial Adviser
RP Wealth Management
Level 2, 351 Oran Park Drive, Oran Park 2570
T: 02 9188 1547 M: 0434 502 079
E: ronald.pratap@rpwealthmanagement.com.au
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last year

Well land will always appreciate at a faster rate than strata plans, but if you buy in the Newcastle area that is Labour so it would ironic that you buy a property in Labour heartland and then take advantage of a Liberal policy!!!

Hi Matthew,
I think you actually are asking two questions:
1: will Labour knock negative gearing on the head?
2: what and where should I buy?

I dont think that Labour will get negative gearing eliminated. And if they do, the Libs will reinstate it as soon as they regain power......which would not be too long after the change to negative gearing legislation gets passed.

as to what and where to buy........thats out of my pay grade:) I think that anything on the east coast of australia is probably going to end up making money, but I do tax advice, not property


Hi Matthew,
Some great input from some very intelligent people in here for you.
My two cents worth, it’s just my opinion so again not trying to provide advice as I know nothing about your position or strategy, is to consider the type of property and the potential investment performance of each one.
Property investment is a growth game. The longer you are in it the better the chance of achieving growth so negative gearing shouldn’t be a major part of your buying strategy. Remember that you could “lose” money via negative gearing and depreciation and still get a CGT bill when you sell too
1. If lenders value this property 20% lower than my contract price can I still settle the purchase on completion
2. If I can’t rent the property can I afford no rent plus outgoings for a prolonged period
3. Is there scarcity in the product I am buying that will underpin demand for tenants and growth
4. When it comes time to sell, who will buy my property
Just a couple of thought starters
Best of luck with the purchase

Just want to add a point in regards to Sydney CBD apartments as a property manager in the past 12 months Sydney metro vacancy rates have doubled with current supply of available apartments and off the plan projects placing rents under pressure to drop value,and they have already,for any apartments that has not got an X factor going for it that distinguishes it from others.2 years ago Sydney CBD vacancy rate was 1.2% this year heading towards 3.0%.If cashflow is not tight for you and you can handle some vacancy of up to 4-5 weeks without a tenant that’s ok but average mum and dad investors on moderate incomes and not being able to go interest only on their loans have a hard time financially in this market environment.

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