The Australian property investment landscape is changing dramatically.
With proposed changes to negative gearing and Capital Gains Tax (CGT) set to reshape the market from July 2027, investors are now being forced to think more strategically about what they buy, how they structure it, and who they work with.
At SW Brokerage, our relationship with Bold Living allows us to guide clients through the entire process from finding the right property and land package, to structuring finance correctly, coordinating the build, and helping investors maximise long-term outcomes.
Instead of dealing with multiple parties separately, clients have a streamlined, supported process all under one roof.
The Big Shift: Why New Builds Matter More Than Ever
Under the proposed Federal Government changes:
Negative Gearing Will Be Limited to New Builds
Currently, if an investment property costs more to hold than it earns in rental income, investors can offset those losses against their taxable income.
From 1 July 2027, that benefit is proposed to apply only to newly built properties.
This means:
- Existing homes purchased after the cut-off date may no longer provide the same tax advantages.
- New builds become significantly more attractive for investors wanting to maximise deductions and cash flow benefits.
- Investors who already own property before the deadline are grandfathered under current rules.
For many Australians, this could create a major shift toward house-and-land packages and newly constructed investment properties.
CGT Changes Could Further Reward New Residential Builds
Another major proposal is the removal of the current 50% Capital Gains Tax discount for future gains.
The new model would instead use cost base indexation, where only gains above inflation are taxed.
However, there's a major exception:
New Residential Builds May Still Access the Better Outcome
Investors purchasing eligible new builds may have the ability to choose whichever calculation method benefits them most:
- The current 50% CGT discount OR
- The new inflation indexation method
That flexibility could become incredibly valuable over time.
Example: $300,000 Capital Gain
| Scenario | Current System | Proposed System |
|---|---|---|
| Capital Gain | $300,000 | $300,000 |
| Taxable Amount | 50% discount = $150,000 taxable | Inflation adjusted = $200,000 |
| Tax Payable (45% bracket) | $67,500 | $90,000 |
For investors, this makes one thing very clear:
New builds are likely to become one of the most tax-effective investment strategies moving forward.
In practice, the government would likely use CPI inflation between:
- the purchase date, and
- the sale date
How SW Brokerage & Bold Living Work Together
At SW Brokerage, we don't just organise finance.
We help clients build long-term wealth strategies and our partnership with Bold Living allows us to support investors through every stage of the process.
Step 1: Finding the Right Opportunity
We help clients identify:
- Suitable investment locations
- Land opportunities
- House-and-land packages
- Properties aligned to borrowing capacity and long-term goals
Once we understand the client's objectives, we introduce them to the right team member at Bold Living to begin designing the ideal build solution.
Step 2: Structuring the Finance Correctly
For investors, structure matters just as much as the property itself.
We work closely with clients to ensure the right lending strategy is in place from the beginning, including:
- Investment loan structuring
- Borrowing capacity planning
- Deposit and equity strategies
- Cash flow management
- Consideration of negative gearing outcomes
- Long-term investment planning
This is especially important as tax legislation evolves.
Step 3: Managing the Build Finance Process
One of the biggest pain points in construction lending is managing progress payments between the builder and lender.
This is where having everything coordinated in-house becomes incredibly valuable.
We assist clients by:
- Managing progress payment stages
- Coordinating with lenders and builders
- Keeping clients informed throughout the build
- Explaining repayment changes at each stage
- Helping avoid delays and unnecessary stress
Rather than clients chasing multiple parties themselves, we help oversee the process from start to finish.
Step 4: Supporting Investors Beyond Approval
Property investment is not just about getting a loan approved.
It's about making sure the investment continues to support the client's long-term financial position.
That's why we continue working with investors throughout the process — helping ensure the property, finance structure, and overall strategy remain aligned.
Why This Partnership Matters
The market is changing.
Tax incentives are shifting toward newly built properties, construction finance is becoming more specialised, and investors increasingly need guidance beyond just securing a mortgage.
Our relationship with Award winning Bold Living allows clients to access:
- Property and land guidance
- Builder introductions
- Finance structuring
- Construction loan management
- Ongoing investment support
all through one coordinated experience.
For investors wanting to take advantage of the opportunities new builds may offer over the coming years, having the right team around you has never been more important.
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