The old way of buying property may no longer work
In the final part of our housing feature series, we examine tax changes, property prices and tighter borrowing conditions that are forcing investors to rethink the traditional buy-and-hold playbook, including how they own their property.
Property investors are being forced to rethink traditional strategies as tax settings, borrowing conditions and property prices reshape the investment landscape. (Image source: Shutterstock.com and API Magazine)
For generations of Australian property investors, the formula was remarkably simple.
Buy a property, borrow against it and rent it out. Use negative gearing to help manage the holding costs. Buy another one when borrowing capacity allows.
And for more savvy or ambitious investors, just repeat.
That strategy has built plenty of portfolios. But the property investment landscape is changing
quickly and the next generation of investors may not be abl…
