Since the federal budget quarantined negative gearing, Australian property investors buying established homes face a much bigger cashflow gap. 

You still get the tax benefit, but you just wait 10 to 15 years to use it (and that wait is painful for investors).

In this episode of Perth Property Insider, I sit down with financial planner Stuart Wemyss, host of Investopoly, to discuss a strategy he wrote about:

Borrowing part of the shortfall in the early years, then repaying it once the property turns cashflow positive. 

Stuart modelled it over 30 years and I think you’ll be surprised at what it could do to your after-tax returns.

Of course it’s not a magic bullet, but it’s definitely something savvy investors needs to be aware of.

Stuart also exposes a common rental yields trap and why "a bad yes costs more than a bad no." 

If you're working out your next move after the 2026 budget changes, hit play now and learn how to keep building wealth without compromising on asset quality.

Tune in to discover:

✅ The real effect of quarantined negative gearing on cashflow (and the impact on your next purchase)
✅ A simple borrowing strategy that can ease the cashflow gap in the early years
✅ How much the budget changes cut after-tax property returns… and how to claw some back
✅ Why investors who bought before budget night may hold a big planning advantage
✅ The odds Stuart gives negative gearing of making a comeback (see if you agree!)
✅ How the timing of your purchase within a growth cycle can influence your long-term capital growth
✅ The one thing to obsess over once you own a property - PLUS what to stop worrying about

Key Points

00:00:00 Intro
00:03:00 Cashflow is the real hurdle
00:06:30 Value of pre-budget properties
00:10:23 Borrowing the tax gap
00:14:18 Will negative gearing return
00:17:49 The high yield trap
00:20:51 Comparing the real returns
00:27:38 Timing the growth cycle
00:30:42 Obsess over income and expenses
00:34:00 Don't set your budget too low

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Connect with Stuart Wemyss

https://prosolution.com.au/
https://www.linkedin.com/in/stuartwemyss

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Check Out The Investopoly Podcast Hosted By Stuart Wemyss

https://www.youtube.com/@investopolypodcast
https://investopoly.buzzsprout.com/share 

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Our Services:
✅Get your Strategic Portfolio Plan and our help with Buying Your Next Perth Property  (https://www.investorsedge.com.au/invest-in-perth-property/)
✅Get clear on your current property’s outlook and the best strategy for you? Email Jarrad for your Strategic Property Review: jarrad@investorsedge.com.au 
✅For More on our Investment Buyers Agency to buy High Performing property: 
https://www.investorsedge.com.au/invest-in-perth-property/
✅For more on our Home Buying Service to a hassle free purchase and move:
https://www.investorsedge.com.au/home-buying/
✅For more info on our award-winning and highly rated Property Management services that give you guaranteed peace of mind https://www.investorsedge.com.au/perth-property-management-specialists/
✅For more info on how our Property Sales services can ensure you get the best selling price while handling all the stress for you https://www.investorsedge.com.au/selling-your-perth-property/

Tools & Insights:
✅Take our Property Investor Readiness Scorecard to uncover your blind spots and make smarter investment decisions before you buy: https://investorsedge.scoreapp.com/
✅Get your Rental Health Score now to ensure your Perth rental property is optimised for returns and sleeping well at night https://rentalhealth.scoreapp.com/ 
✅View upcoming property investor webinars, events, and networking sessions: https://www.investorsedge.com.au/events/ 
✅Get suburb intelligence reports and exclusive invites to our webinars, events, and workshops.  https://www.investorsedge.com.au/join 
✅Join the Perth Property Investment Facebook Group https://www.facebook.com/groups/perthpropertyinvestors

-

Connect with Perth Property Insider:

https://www.youtube.com/channel/UCgT9-gB6RS69xSgc8J9KrOw
https://www.facebook.com/investorsedge

Since the federal budget quarantined negative gearing, Australian property investors buying established homes face a much bigger cashflow gap.&nbsp;
You still get the tax benefit, but you just wait 10 to 15 years to use it (and that wait is painful for investors).
In this episode of Perth Property Insider, I sit down with financial planner Stuart Wemyss, host of Investopoly, to discuss a strategy he wrote about:
Borrowing part of the shortfall in the early years, then repaying it once the property turns cashflow positive.&nbsp;
Stuart modelled it over 30 years and I think you&rsquo;ll be surprised at what it could do to your after-tax returns.
Of course it&rsquo;s not a magic bullet, but it&rsquo;s definitely something savvy investors needs to be aware of.
Stuart also exposes a common rental yields trap and why "a bad yes costs more than a bad no."&nbsp;
If you're working out your next move after the 2026 budget changes, hit play now and learn how to keep building wealth without compromising on asset quality.
Tune in to discover:
✅ The real effect of quarantined negative gearing on cashflow (and the impact on your next purchase) ✅ A simple borrowing strategy that can ease the cashflow gap in the early years ✅ How much the budget changes cut after-tax property returns&hellip; and how to claw some back ✅ Why investors who bought before budget night may hold a big planning advantage ✅ The odds Stuart gives negative gearing of making a comeback (see if you agree!) ✅ How the timing of your purchase within a growth cycle can influence your long-term capital growth ✅ The one thing to obsess over once you own a property - PLUS what to stop worrying about
Key Points
00:00:00 Intro 00:03:00 Cashflow is the real hurdle 00:06:30 Value of pre-budget properties 00:10:23 Borrowing the tax gap 00:14:18 Will negative gearing return 00:17:49 The high yield trap 00:20:51 Comparing the real returns 00:27:38 Timing the growth cycle 00:30:42 Obsess over income and expenses 00:34:00 Don't set your budget too low
-
Connect with Stuart Wemyss
<a href="https://prosolution.com.au/">https://prosolution.com.au/</a> <a href="https://www.linkedin.com/in/stuartwemyss">https://www.linkedin.com/in/stuartwemyss</a>
-
Check Out The Investopoly Podcast Hosted By Stuart Wemyss
<a href="https://www.youtube.com/@investopolypodcast">https://www.youtube.com/@investopolypodcast</a> <a href="https://investopoly.buzzsprout.com/share">https://investopoly.buzzsprout.com/share&nbsp;</a>
-
Our Services: ✅Get your Strategic Portfolio Plan and our help with Buying Your Next Perth Property &nbsp;(<a href="https://www.investorsedge.com.au/invest-in-perth-property/">https://www.investorsedge.com.au/invest-in-perth-property/</a>) ✅Get clear on your current property&rsquo;s outlook and the best strategy for you? Email Jarrad for your Strategic Property Review: <a href="mailto:jarrad@investorsedge.com.au">jarrad@investorsedge.com.au&nbsp;</a> ✅For More on our Investment Buyers Agency to buy High Performing property:&nbsp; <a href="https://www.investorsedge.com.au/invest-in-perth-property/">https://www.investorsedge.com.au/invest-in-perth-property/</a> ✅For more on our Home Buying Service to a hassle free purchase and move: <a href="https://www.investorsedge.com.au/home-buying/">https://www.investorsedge.com.au/home-buying/</a> ✅For more info on our award-winning and highly rated Property Management services that give you guaranteed peace of mind <a href="https://www.investorsedge.com.au/perth-property-management-specialists/">https://www.investorsedge.com.au/perth-property-management-specialists/</a> ✅For more info on how our Property Sales services can ensure you get the best selling price while handling all the stress for you <a href="https://www.investorsedge.com.au/selling-your-perth-property/">https://www.investorsedge.com.au/selling-your-perth-property/</a>
Tools &amp; Insights: ✅Take our Property Investor Readiness Scorecard to uncover your blind spots and make smarter investment decisions before you buy: <a href="https://investorsedge.scoreapp.com/">https://investorsedge.scoreapp.com/</a> ✅Get your Rental Health Score now to ensure your Perth rental property is optimised for returns and sleeping well at night <a href="https://rentalhealth.scoreapp.com/">https://rentalhealth.scoreapp.com/&nbsp;</a> ✅View upcoming property investor webinars, events, and networking sessions: <a href="https://www.investorsedge.com.au/events/">https://www.investorsedge.com.au/events/&nbsp;</a> ✅Get suburb intelligence reports and exclusive invites to our webinars, events, and workshops. &nbsp;<a href="https://www.investorsedge.com.au/join">https://www.investorsedge.com.au/join&nbsp;</a> ✅Join the Perth Property Investment Facebook Group <a href="https://www.facebook.com/groups/perthpropertyinvestors">https://www.facebook.com/groups/perthpropertyinvestors</a>
-
Connect with Perth Property Insider:
<a href="https://www.youtube.com/channel/UCgT9-gB6RS69xSgc8J9KrOw">https://www.youtube.com/channel/UCgT9-gB6RS69xSgc8J9KrOw</a> <a href="https://www.facebook.com/investorsedge">https://www.facebook.com/investorsedge</a>

Jarrad Mahon is the go-to guy in property management and investment in Perth and the owner of Investors Edge Real Estate, giving you his insider view on the Perth market and the strategies needed for you to grow your wealth and improve your life. All you need to do is to stay tuned!

Perth Property Insider Podcast

Perth Property Insider gives property owners and investors straight-talking insights to make better property decisions.

Hosted by property investor, strategist and Investors Edge founder Jarrad Mahon, the podcast cuts through the noise with practical insights into the Perth property market, investing, buying, property management, portfolio strategy and selling.

Whether you’re considering your next investment, reviewing what you already own or simply trying to understand what the Perth market is doing, you’ll get the research, strategies and perspective to make informed decisions, build wealth and move forward with confidence.

Perth Property Insider gives property owners and investors straight-talking insights to make better property decisions.
Hosted by property investor, strategist and Investors Edge founder Jarrad Mahon, the podcast cuts through the noise with practical insights into the Perth property market, investing, buying, property management, portfolio strategy and selling.
Whether you&rsquo;re considering your next investment, reviewing what you already own or simply trying to understand what the Perth market is doing, you&rsquo;ll get the research, strategies and perspective to make informed decisions, build wealth and move forward with confidence.