What the Budget shock means for property investors, rents and house prices

In this 2 Sense episode of the Australian Property Podcast, Pete Wargent and Chris Bates react to a Federal Budget that could reshape Australia’s housing market faster than many investors expect. Recording the morning after the announcement, they break down the headline changes: negative gearing being restricted to new builds from 1 July 2027, a tougher capital gains tax regime, and a new minimum tax rate on trusts. But the real focus is what those changes do to behaviour. Pete and Chris unpack why investor borrowing capacity could be hit, why established-property demand may soften, and why areas with heavy investor ownership could feel the pressure first. The episode also looks at the flow-on effects for rents, first-home buyers and housing supply. With vacancy rates already tight and rates still elevated, the pair explain why the market could split further between scarce owner-occupier-grade assets and investor-led stock such as some apartments and regional hotspots. They also discuss the likely policy response, including a bigger role for the 5% deposit scheme as government tries to keep demand from falling too hard. If you want a practical conversation about what the Budget could mean for prices, rents and property strategy from here, this is a timely episode to queue up now. Episode Chapters: 00:00 Budget Day Reaction 01:28 Why This Budget Is Different 04:05 Key Changes Explained 06:07 Market Impact Overview 07:55 Borrowing Capacity Hit 09:24 Investor Alternatives 13:51 Wealthy Investors vs. Everyday Buyers 16:19 Regional Markets at Risk 20:13 Finding New Equilibrium 22:38 What Happens to Rents 28:39 Possible Workarounds 33:49 Listener Q&A: Dual Income Properties 43:29 Listener Q&A: Rentvesting Strategy 48:43 What to Watch Next Episode resources - Ask a question (select the Property podcast): https://bit.ly/R-quest Rask Resources - Pete's Buyers Agency: https://allenwargent.com.au - Alcove mortgage broking: https://raskmedia.com.au/services/mortgage-broking - Amy Lunardi Buyers Agency (Melbourne) https://amylunardi.com.au - All services: https://bit.ly/R-services - Financial Planning: https://bit.ly/R-plan - Invest with us: https://bit.ly/R-invest - Access Show Notes: https://bit.ly/R-notes - Ask a question: https://bit.ly/R-quest - We love feedback! https://raskau.typeform.com/to/ZbfHy6IP Follow us on social media - Instagram: https://www.instagram.com/rask.invest - TikTok: https://www.tiktok.com/@rask.invest DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg