The Brisbane Property Market update: July 2026

How are the recent Government budget changes affecting the Australian property market, especially for property investors?

27 July, 2026. By Isaac Skinner, Director of Source and Secure Buyers Agency

Unless you’ve been avoiding the news completely, you would know by now there has been some major changes made to the property investment landscape here in Australia. Changes that not only affect whale investors (less than 1% of investors), but the average Aussie who is trying to build wealth through 1 or 2 solid properties. To summarise the changes that are being implemented:

1/ Changes to negative gearing on established investment properties purchased after budget night 2026 (12 May).

One of the most prominent changes has been the removal of negative gearing on investment properties purchased after budget night, 2026 (May 12). Essentially, negative gearing was the ability to offset losses on your property investment throughout the financial year against your personal income. For example, if your property investment kept you out of pocket $5k per year, your taxable income would go from $100k, to $95k. The only property asset negative gearing can still apply to is new builds. However, I wouldn’t say there is a going to be a big rush towards building an investment property, compared to still buying established. This is because the cost of building has never been higher, and on top of this, you’re already paying a premium for land plus a new build. Not to mention the timeframe to build, and the fact that land is scarcely available anywhere where people actually want to buy.

This change is grandfathered, so if you already own an investment property you held before budget night 2026, your investment will not be affected by the new negative gearing reforms.

2/ Changes to the capital gains tax structure.

Currently, there is a 50% capital gains tax discount for individuals, trusts & partnerships. From 1 July 2027, this is now being changed to a cost base indexation model, with a 30% minimum tax rate on net capital gains. What this means now is instead of being taxed on the real gain minus the 50% discount, you’ll be taxed on the real, inflation adjusted gain, and you’ll at least pay 30% tax.

It’s important to note this capital gains tax update doesn’t just apply to property investment. It is applicable to most investments! Such as stocks, business, etc.

On top of all this, the Government has just announced that buying a property in your self-managed super-fund will no longer be allowed from August 10, 2026. Which in itself has caused a flurry in the market with people setting up self-managed super-funds to go out and buy an investment property with their super.

So with all these changes, it begs the question: What is the best way to build wealth through property in 2026?

Well, it will depend on your situation, so let’s run through a couple of scenarios.

1/ You are a first home buyer.

Before these budget changes, rentvesting was becoming a more popular option for first home buyers. Rentvesting is essentially where instead of buying an owner-occupier to live in, you would purchase an investment property instead, and continue living where you are living. The problem is now, because of the negative gearing changes, the banks are lending less towards investment properties compared to what they were previously. For first home buyers now, I see the best value in buying an owner-occupier home, as it is one of the only investments that is still a tax-free haven. If you are wanting to build wealth through your property, I would be maximising this through your owner-occupier. Instead of buying a property that is already beautiful that you’re paying a premium for, look for opportunities where you can add value to the property through renovations, or even a small development down the track. This might look like a buying property that needs cosmetic work, or even a property where you could build a granny flat on the property. Buying a property with a combination of both is ideal.

We are probably seeing the best time in a long time for buying right now too. With limited investors in the market looking to buy, there is less competition for properties, meaning you can really negotiate a better price than what you could 3-6 months ago. How long will this period of good buying stay often for? It’s hard to say… We’ve seen cycles like this where these periods only hover for a few weeks before people get comfortable with the changes and start buying again.

2/ You own a property that is currently your personal place of residence (PPR).

Now, there is one sort of ‘loophole’ with the new changes. If you own a home that was purchased before the changes, even if it is your owner-occupied home and not an investment property, you can still access the grandfathered negative gearing system. What this means is, you could turn you current owner-occupier home into an investment property and still get the benefits of negative gearing under the old system. What a lot of our clients are looking to do now is draw equity from their owner-occupier home, use it to purchase another owner-occupier home, and turn their original home into an investment property! Chances are, if you purchased a property 2-5 years ago, you’ve build up a large amount equity in your home. If you were looking to buy an investment property, this could be a really good route for you to take.

And, if you’re really looking to build some extra equity, you could purchase a property that needs some renovation work, or has some sort of development potential to add even further value to the property down the track.

Overall, if your vision is to build wealth over the long-term, as much as these changes can be a roadblock, it’s usually swings & roundabouts. We saw a very smiliar thing happen not too long ago in New Zealand, in 2021. The Government basically did the exact same thing where the ditched negative gearing thinking it would help the property market. What ended up happening was rents went through the roof, the property market was in shambles, and 2 years later they ended up reverting the changes. Will the same thing happen here? No one has a crystal ball, but history does have a tendency of repeating itself.

Historically, the property market has always continued to grow over the long-term, even despite some dips in the market over the years. As long as you plan well, can comfortably hold through a slightly turbulent market, and keep the focus on your long-term goals without over extending yourself, property will be a great investment vehicle for you.

Need to chat about your property purchase? Get in contact with us today!

NOTE: This is not financial advice. Always speak to your accountant & financial planner before making financial decisions.