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The UPDATED 2026 Australian Property Strategy Most Investors Are Still Getting Wrong · The Follio Property Podcast

• 0:00
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• 0:56
  Westpac predicts three more back-to-back rate rises. Property investment posts promising big portfolios and fast returns. Are they too good to be true? Aussies might need to rethink where they're investing their money. 60 to 70% of the portfolio reviews I conduct, Rhys, their allocations of funds are in the wrong assets or in the wrong locations. And it's sorrowing conversation that we might have to go a step backwards before we can go forward. That's the opportunity cost.
• 1:19
  We've already had two rate rises, likely another couple around the corner as well. And asset qualities is now more important than ever. There is some headwinds in 2026. If you have a compromised asset, C or D class asset, you want to be selling that in the FOMO phase. In a stagged market, often you can't sell them and you have to wait another whole cycle. But if you're having just an asset that performs a percent better, the upside in 10 years time is significant. Hundreds of thousands of dollars. That might be the difference between having one or two properties in your portfolio compared to having four or five of the right assets.
• 1:49
  You're listening to the Folio Property Podcast. I'm Rhys Bettle and I'm here each week with my co-host, Lachlan Delahunty. Lachlan, let's talk through. We've mentioned this on previous podcasts. We've mentioned this probably within our dialogue over the last 12 months.
• 2:04
  proactive with property management and how to actually utilize your assets as an investor. And today, what I really want to talk about was going through in more detail, what is the difference from purely using a property management service rather than self-manage versus being proactive and actually being able to expand a portfolio?
• 2:22
  Yeah, and I think a huge part of that is the portfolio management, right? It's not the sexy stuff. People want to know where to buy and what to buy in the latest hotspots in Australia. But more importantly, it's understanding what's in your portfolio and is that the highest and best use of your credit or capital allocation and then how to maximise every dollar within that portfolio.
• 2:44
  Hey guys, quick thing to share. If you're serious about investing in Australian property right now, you need to see what we put together. It's called the National Investment Report, and it's our brand new monthly deep dive into exactly where the market is moving, what the data is saying, and what the smart investors are looking at right now. You can get the first access completely free. Just scan the QR code on the screen right now, or click in the link below to fill out the form.
• 3:09
  Looking at your property, I guess, talking through an investor who might necessarily only have one property in their portfolio, before they go through the steps to take to actually evaluate whether it's a rent increase or whether there's some sort of value add potential or something that can increase the overall position of that asset, what should be some of the first things that they look at from, let's say, asset type or location? Should they review, is this right for our portfolio?
• 3:35
  Definitely. It comes back to what is your overall goal and I don't like to sound so boring and repeat on that. It's really taking a step back. What am I trying to achieve with my property portfolio? Like anything in life, whether it's work, career, it's important to have goals to work towards and then you have a benchmark to sort of compare each year how you're going against your goals.
• 3:55
  Once we're then, I always talk about your credit is really the chips you can play, right? So we are built, the property game is a game of debt. And based on my income today, what can I borrow? And then based on that ability to borrow, what properties or property do I have in my portfolio? And 60 to 70% of the portfolio reviews I conduct, Reese, their allocations of funds are in the wrong assets or in the wrong locations.
• 4:22
  And it's sometimes a sorrowing conversation to have. It's that we might have to go a step backwards before we can go forward. And that's the opportunity cost. And we have to be very careful around that, around selling assets, particularly in rising markets. But if you look at the compounding impact that could have over...
• 4:40
  three, five, seven, 10 years, by having just an asset that performs a percent better than what's currently in the portfolio, the upside in 10 years' time is significant, hundreds of thousands of dollars, right? So it's important for those minor adjustments. And then when we look at the rent increases we can achieve during that period, that's the difference to increase your serviceability, which might be the difference between having one or two properties in your portfolio compared to having four or five, and having four or five of the right assets.
• 5:09
  If someone's reviewing their property and you mentioned there, looking at asset selection is going to be key and making sure you have the right property even in a rising market. At what point will someone know that they're in a position to sell that asset or should they look at other alternatives first to maybe capitalise on increasing a yield or increasing their evaluation or should they have their reviews reviewed?
• 5:34
  12 monthly let's say, and say look, this isn't the right asset in my portfolio. Yep. So it's, again it comes down to the opportunity cost and the situations where we see trading out of assets as the right solution is typically one or two things. It's a C or D grade asset so it's something that we just don't want in the portfolio. So removing, you know, it's like ripping the bandaid off.
• 5:57
  getting out of the portfolio now is going to be far better longer term. If it's a B or a B+, so to speak, then maybe warranting a rising market due to the costs associated with selling and stamp duty and those things, holding it to the top of the cycle. But unless it's an A-grade asset,
• 6:12
  Once it's hit the top of the cycle, typically we don't want to be holding onto that asset long term because markets, when they stagnate, they can stagnate from four to seven years. If you look at historical markets of the capital cities around Australia, the exceptions to that have been Darwin and Perth. People forget Perth stagnated for almost a decade and Darwin beyond that. And so then the conversation becomes easy to people. Do you want to have an asset that could do zero to negative 10% growth over that 10 year period?
• 6:40
  Or do we want that exposure into a market that has 6% to 10% compounding growth over the next five to seven? And when you look at it like that, it's just an easy decision to make. Being in the environment and looking at a portfolio, it's often difficult for people to determine what assets or what locations are in those points in the cycle where they should be offloaded or sold.
• 7:02
  What do you think the biggest risks are at the moment? You mentioned there's some areas that have seen some significant growth. Let's highlight Perth. You know, a majority of our audience does come from Perth. We're based in Perth, so we see a lot of Perth clients. Rising market, you mentioned earlier, you're not always going to be in a position to say sell that asset in a rising market. Perth is still very much a rising market. But are there a lot of assets do you think people are owning in their portfolio at the moment that there's certainly a lot of cracks that are getting overshone by a rising market?
• 7:29
  Absolutely, Resson. I've sold a couple of personal assets in the last six months on the basis of that, that those type of properties won't be the easiest to sell in a stagnant or a market that's trending downwards, but have achieved exceptional sales outcomes for me in a very hot market.
• 7:46
  You want to be selling, if you have a property in your portfolio that's not going to be there for the long term, so it's a compromised asset or a C or D class asset, you want to be selling that in the FOMO phase. That's when the fear of missing out is at its most magnified and people will not-
• 8:05
  consider some of those downfalls. And that might be things on a busy road. It might be something that fails due diligence, could be close proximity to social housing. It could be a one better without a car bay on a second story with no balcony that at the moment, because of the lack of stock, people are paying huge prices, six, seven, 800,000 for these assets, that we know when you step back for a moment in a stagged market, those things are not just difficult to sell, often you can't sell them.
• 8:34
  and you have to wait another whole cycle. And I think that's why we're seeing some investors cash in now that have held things for 12, 13 years. And it was a little bit of that last year, we've seen a lot of assets that were trading for the first time in a decade that they were selling just above what they'd paid 10 years prior. And those properties have performed quite well over the last 12 months. But once they have served their purpose for you in your portfolio, you just have some self-reflection. You know that they're not good assets.
• 9:01
  And it's sometimes difficult to tell, but I think deep down, you know, I've been pretty lucky with that asset. It's on a main road. Probably I'll get a price that I may not get in a stagnant market. And that's the deep conversation you need to be having with yourself.
• 9:16
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• 10:15
  We've already had two rate rises. I don't want to talk about this every episode, but it's very topical. It's part of our lives at the moment. We've had two rate rises, likely another couple around the corner as well. And a lot of these investors or people that have just got into the market over the last 12, 18 months in these speculative areas or some of these asset types that, like you said, in a slow market aren't going to sell and are going to struggle, feels like they're going to start to feel a bit of pressure over the next couple of months as well. So asset qualities is now more important than ever. Yeah.
• 10:44
  Yeah, and that's it. And there is some headwinds in 2026. So those assets that are in some of those speculative areas are compromised, are in high investment areas. I would be having to look at my portfolio and have it in consideration if they're going to be in it long term. And if they're not, where demand still outweighs supply, then it may be an opportunity to offload.
• 11:05
  Alright, let's kick started with being proactive with the portfolio management side. We're pretty passionate about it within our business and what we sort of educate our clients with, but I thought it'd be good today just to go through some of the key points to look at just so our audience will understand where they sit and what are some things they need to review.
• 11:24
  I think it's important you do so, Rich, because I think there's a lot of content out there about buying more property, the next hotspot, all this noise. But really, it's important to take stock and make sure that what you have in your portfolio, even if that's a single investment, is absolutely maximized because that's something that you can easily control and it helps with serviceability. Also, maximizing your serviceability in the best way you can.
• 11:49
  Okay, so first step, portfolio strategy and oversight. So some of the key things here that we're looking at is strategy reviews, as we've discussed, and you speak quite passionately about throughout the podcast, whether that's buying or holding, which we've discussed here as well, equity release and any sort of acquisition planning. But really the whole point of this is actually having a proper strategy involved and a regular review and reporting on your assets.
• 12:16
  Yep, so that's exactly it. What are we keeping in the portfolio? What are we potentially moving on that doesn't serve a purpose anymore? And what could you potentially start to add to that? Is it going to be a high capital growth asset? Is it going to be more of a balanced asset? So we need, for serviceability reasons, something that's got a higher yield. So it's going to be very dependent on the client and their current situations.
• 12:38
  But that's a super important place to start. And like you said, things around equity releasing, how's your debt structured against your primary place of residence versus your investment properties. That structuring on its absolute isolation is worth the time and effort.
• 12:52
  And the key thing here is, what is it, like 90% of investors only have up to two properties. So there is a small market of the investment space that has more than two properties, but a lot of the clients we deal with on a day-in-day basis and probably a lot of people that listen to this podcast have more than two. We said this earlier today in a meeting in the business, if you have more than two properties and you've got multiple properties in multiple locations, different property managers, it's a role in itself
• 13:22
  to successfully manage your own portfolio and dealing with third parties and different property managers as well. So I think when we're talking through this strategy and review, it's not just of your asset one, but it's your whole portfolio. And it could look differently depending on where they are from a location standpoint too.
• 13:39
  Yeah, it's probably one of the biggest barriers to people building out larger portfolios is because it hasn't been managed correctly. So serviceability is a huge piece of that. And that's probably what constrains people to two properties. And then those that have got more than two, five, 10, 20 properties, becomes a real headache. And then it becomes a burden and probably the stress with that. And I've been through this myself until recently with sort of
• 14:01
  started to work on a business solution for people like myself and other investors with multiple properties to take that headache away because it is, it's a lot of moving parts and a lot of different communication points with different property managers. And as we know, it can be a tough industry. So making sure that that's managed correctly, A, saves a lot of money in terms of getting onto problems before they become too expensive, but it's a lot of headache and a lot of stress that you can sort of save from that process.
• 14:26
  Cool. Next key point is rental optimization. How many people do you think are actually undervaluing their property right now?
• 14:33
  certainly more than half when we do our portfolio reviews. And sometimes they're quite in depth, sometimes they're shallow, but even from a high level point of view, you can often see things that are clearly under rented. And it's unfortunate because property managers, for the most part, do a really good job and it's a tough industry. They're not extremely incentivized often to increase rents, right? They wanna keep the process between the tenant and the landlord as comfortable as possible for both parties without too much headaches on either side.
• 15:02
  they're not naturally, from a business point of view, really incentivize to do what's the highest and best use for the investor, which in my opinion, is to maximize rents. And I know this might upset a lot of people that say, we've got a housing shortage, you shouldn't be as a landlord trying to maximize rents. That's exactly what you should be doing.
• 15:24
  There's been periods of time and will be periods of time when landlords don't have tenants, when landlords have properties significantly under-rented. So during periods of demand and supply imbalance, they should benefit from that upside and it is the job of the property manager. Well, it should be the job of the property manager to, in every case, maximise the investment returns. It doesn't happen.
• 15:46
  across the board, full stop, I very rarely see it. And our job as portfolio managers and advisors is to identify those windfalls because you can see often across a portfolio there's thousands of dollars that can be improved which helps again with serviceability, helps again,
• 16:05
  It could be the difference between buying another property now or in 12 months' time is by increasing the rents across the board. Well, in this market, that could be the difference between another $150,000 of equity because markets are moving so quickly. So it's just been really proactive in what is a very reactive industry.
• 16:21
  And I think a lot of these property managements, you know, I've had loads of cases where they'll just use a data warehouse like RP Data. What's the medium rent saying there? Whack, that's what we're going to tell our clients. Not doing any actually on-the-ground research about what's actually renting. Similar to how we run as a business from a buying perspective, you need that local on-the-ground sentiment to understand what something's actually truly going for at the moment.
• 16:43
  and trying to be proactively driving rents rates about what is the market paying more for. And we've seen with very modest modifications to the property, might be adding, converting a laundry into another bathroom could be the difference in $150 a week rent. Well, the payback period on that is typically only sort of 18 months. Well, that's an exercise worth doing for something that's going to be in your portfolio for the next five, 10 years.
• 17:09
  what are other elements that the local demographic or local market there will pay a premium for and introducing some of those. And again, a property manager aren't incentivized. It's not their fault. It's just how they get paid isn't incentivized to try to think, how can I proactively increase my client's rental returns?
• 17:30
  A property manager, I guess, is probably dealing from two sides. They're dealing with the tenant and the landlord, whereas actually being proactive and purely having the investor or the landlord's best interests at heart is obviously going to be a bit more proactive. Absolutely. Well, that's who's paying them. And it's like, I think it was Marty Fox come out and said he's been driving up prices since 2000, right? As a selling agent, that's your job, to get the best price for the seller. The same as a property manager, well, it should be, is at all costs get the best price you can for the person that's paying you, which is the landlord.
• 18:00
  Next one, you've just touched on it with the conversion, I guess, of the laundry there, but is actually value-add and growth opportunities, whether that's standard sort of cosmetic stuff that's going to give a bit of a yield uplift or actually going down more the renovation and development feasibility assessments.
• 18:16
  Yeah, definitely. I think this is probably highest and best use analysis is commonly not done. Something we do with our clients, but it can be the difference. This is where you can get your biggest return in terms of increasing the yield of the property is looking at the highest and best use. And often we see increasing the bedroom capacity or the accommodation capacity in a home is something we do frequently, Reece, when you're looking at
• 18:42
  Increasing the accommodation rates to house multiple occupants, we see massive returns on that. Yes, it is unique, but again, we don't want to change how the house functions because it could increase the sale price, but by opening a three-bedroom up to a four-bedroom and potentially independent leases, we've seen a $600 a week go to $1,000 a week. Ancillary accommodation or cosmetic renovations.
• 19:07
  highest and best analysis should be done on all properties in the portfolio. Also looking at external factors or external rental options, short stay, Airbnb, is there a place for that? It's often overstated. I get clients all the time, should we Airbnb this? You've got to have the right attributes for that. If it's close to the beach, say Scarborough or in Melbourne if you were Bayside, putting things like a sauna or a spa can increase your occupancy quite significantly.
• 19:36
  these are the type of assets when you look at it, can we improve the cash flow through those sorts of options. With the renovations and some of the cosmetic uplifts, when should a person be looking to do these reviews? Is it when they're in a position financially to make this move or should someone be doing this as part of their annual reviews?
• 19:53
  Definitely annual reviews because some of these plans take 12, 24, 36 months to implement because A, you need to have a vacate in lease to sometimes go in there and do the works that you need to do. How does it serve the overall plan? Things do change. So it's not when you're financially capable because if we put a 24-month plan in now to activate some of those things, it's going to take at least 12 months because we have to wait until it expires.
• 20:18
  So preparation is everything and you can always over plan. And does it mean you deliver on the 10 items that we set out to do and we only hit six? That's still better than doing nothing. So having a plan will give you either peace of mind that, okay, we're working towards something and it will give you options. In anything, I'd rather more options than less, particularly when you're speaking around cash flow and budgets are only going to get tighter, cash flow is going to become more
• 20:44
  ever so important with the rising interest rate environment, every dollar you can save becomes critical in your portfolio. And you only look at it as we're recording this today where you've got rising construction costs off the back of the oil shortage. This could be temporary and prices may come down, but if you've already got those approvals in place, then you're ready to go as soon as there's a position where the costs do come down.
• 21:09
  What have we learned in the last six years? There's always going to be fluctuations in costs. There's always going to be fluctuations in interest rates. So why wouldn't you be trying to save dollars everywhere you can and have a plan to maximize your return on every asset in your portfolio, whether that's one asset, three assets, or five. If you make every hand a winner and you've ticked off all the boxes, you've got a highest and best use analysis on all those assets, you know what direction you're heading
• 21:37
  and then you look at your overall serviceability and say, I've maximized every dollar I possibly can, then it's going to make you sleep a lot easier at night, but it's going to give you so many more options, and that's what we're trying to create for our investors.
• 21:49
  Next one is cost and expense optimization. Now I know full well all of these key points here a property manager wouldn't be doing, but things such as reviewing your management fees, reviewing your insurances, reviewing any maintenance costs. You know, I'm guilty of that with some of my investment properties. You just sign off on whatever their maintenance provider's charging you and don't even think twice, but on reflection you're probably charging 5X what it should be.
• 22:15
  What are some other things that I guess a client should be looking at when they're looking to optimise some expenses? I think it just comes part of that annual review because you'll find that property managers will slowly increase fees over time and you would have signed a bit of paperwork you probably didn't even double check or your insurances all of a sudden, as they do, they've increased up every year and haven't.
• 22:37
  really had a look at your land tax bill, but it might be overinflated, so there's probably an argument there. You could push back on the ATO to say, hey, some of this land tax is probably overstated. So it's looking at, again, on an annual basis, those little one percenters all add up. And if you don't have your finger on the pulse all the time, it's really just important. And that might be that one day a year where you speak to a professional, someone like us that manages portfolios, or you just do it yourself. You go through all your line items to see where there is potential cost savings.
• 23:06
  And you'll be so surprised at the difference that will make over not only a 12-month period, but compound that over a five to seven to 10-year period. And that's the horizon we're investing in. You'll be gold smacked on the savings you'll make and the savings you'll make in after-tax dollars, which is significant.
• 23:24
  Finance and debt optimisation is the next key point here. Now, we work with a load of different sort of financial partners who specialise in these things, but from a client's perspective, some of the key things they should be looking at is reviewing their mortgage, whether that's refinancing away, their debt's structured as well. We come across a lot of clients coming to us where...
• 23:48
  The debt is all over the place in terms of the PPOR versus investment and also looking at equity release to go again as well.
• 23:55
  Yep, 100%. Speaking to an investment broker, ideally, that understands particularly portfolios, highly recommend because, again, it changes in this environment, and we don't want to double down on what's happening in the world at the moment. But I'd be reviewing this every quarter at the moment just because banks are turning on and off the taps everywhere, right? And not that you want to give your broker a hard time. I'm sure the brokers that we work with are going, please don't. I don't want an influx of inquiry to check this.
• 24:20
  But it's important. Again, across your portfolio, it's going to make such a big difference if you can save 0.25 on an interest rate or refinance the debt so it's structured more in your favour for tax optimisation. Absolutely. And if anything happens to the negative gearing side of things as well, you really want to be getting as much value as possible out of your bank or your lender at the moment. Yeah.
• 24:40
  Yeah, because those tax savings, again, are after-tax dollars. So that's really important for people to understand that. We're not talking about small amounts of money here. We're talking about these 1%ers add up to tens of thousands of dollars in savings.
• 24:52
  Not just brokers, accountants are key for this as well. And one that we haven't spoken about too much on and it's very specific on new builds but actually can help from an established standpoint as well. We've got a relationship with a few providers that have educated us on that. But tax depreciation schedules as well. And that's probably the key thing I mentioned there. It isn't just new builds where you can claim back depreciation. How important is looking at that from an investment standpoint?
• 25:19
  Yeah, I'm a personally good example of why to do this, Rhys, because I've sort of ignored depreciation as a whole because I typically buy strong land value assets that are quite old. But people forget anything that's been sort of updated in the house, be that new air conditions or capital works, if they had a new kitchen or...
• 25:35
  There's a lot that you can actually claim that I thought was probably a waste of time. But again, across multiple properties, it doesn't matter how old they are. A lot of the providers we work with, Rhys, will give you an estimate on your potential cost benefit of doing an appreciation. If it's not exceeding the cost of the report, they'll be upfront, they'll provide you a free assessment. There's really nothing to lose in those situations because if there is any gains, it's going to obviously be beneficial. Again, back to those 1%.
• 26:04
  And then I guess from the last one from anyone listening to this podcast, exit or repositioning strategy. So there's an art to this as well in terms of when to sell, rebalancing your portfolio, looking at retirement income, who do you sell it with, what's the best outcome for your portfolio?
• 26:21
  One of the most important pieces of your portfolio is how you exit, right? It's maximizing your returns. And there is an art and a science to it. Most people get a little bit lazy with it because it's an investment property, then I'm emotionally attached to the property. They'll just take what they perceive as market value. But we're very big on this, is planning for the sale event. And often this is a couple of years in advance, so knowing when the tenancy's coming up for review, making sure that we get them onto periodic 12 months in advance. So, because changes in markets can happen
• 26:51
  as we know, overnight. I've sold a property this year, literally the week before this war broke out. Yes, it was timely, but that sale was planned 12 months ago and I was watching the market month by month in preparation for trying to sell into the FOMO and picked February 2026 as a time to sell that particular asset. In the lead up to that, there was a lot of capital works, renovation, new kitchen, new painting, new landscaping. Would have met with four to five selling agents,
• 27:21
  what was their campaign, what was their selling strategy, working the selling agent to make sure they get the best outcome. So you've done all the hard work in buying the property well, managing it correctly. We want to get every cent you possibly can on that exit. Timing the market, timing the exit and making sure that you're extracting the highest and best use of that property when it goes to market. It's showcased in its best form, staging, photos, everything's thought out. That's a full-time job in itself. We call it
• 27:51
  manage the agent essentially and that's for me that's as important as the lead up to the portfolio management is making sure you maximize return
• 28:00
  And that's even assets that are in the portfolio that you're selling prematurely or those B, C, D grade assets that you're selling because they're not great assets, you don't want them long term. You still gotta get every dollar on the exit. And a few minor tweaks, and we've had a few sales agents on the podcast talk through what they should and shouldn't do before taking it to market, can make such a difference. You know, just had a client, just before the Easter break launch it the week before and you know, reach out, say, well do you think this is a good idea? And you know, hindsight,
• 28:29
  Terrible idea. A war's breaking out, absolute uncertainty and school holidays. Always tell clients, try not to sell property when there's a lot of uncertainty in the market. Not a bad time to get the property ready because this uncertainty will pass. We know that like anything.
• 28:46
  But certainly, you want to have more tailwinds and headwinds in school holidays, Easter break, wallbusting out, no certainty, interest rate and rises may not be the ideal time to sell. Let's get some more certainty. Let's get it prepared. Let's get it painted, staged, landscaping, furnished photos. And then when market sentiment's back and we feel like it's the right time, it might mean holding a vacant property for a couple of weeks. That's fine because it's click of a button. It's on realestate.com and you're talking the difference of-
• 29:13
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• 30:03
  As you said, probably one of the most important steps in the whole process of managing your portfolio correctly. Very underestimated. Now, looking at the market in 2026, how important is it to implement this strategy now as opposed to, say, the last few years where it's been a rising market everywhere?
• 30:22
  Yeah, I think there's more headwinds in the market as we move into 26 and beyond. You want to make sure you're saving every dollar and maximizing your returns. It's going to be more important on how you manage your portfolio than it has been for the last six years, right? Because with all the tailwinds, markets have run. If you've done nothing, been a lazy investor in the sense that you've been quite lazy in how you manage your portfolio, I'll put my hand up. I've been in that.
• 30:47
  for a lot of the last five years and it's been fine because when the tide rises all ships rise and it sort of you know i guess covers up any mistakes or cracks in my portfolio now as i'm you know planning forward and i can see it you know we need to save every dollar we need to maximize the debt that i have in the marketplace it's going to become more important than ever to make sure your portfolio is managed correctly
• 31:10
  Absolutely. And I think a lot of people would have only been in the market at this high point. But I've been through investment properties where you haven't had a tenant or
• 31:19
  You've had to drop your rent 40%, 50% and your mortgage repayments are still the same. A lot of our listeners are probably new to the property investment game, don't know what it's like to go through periods of time when property prices aren't going up by double digits and rents aren't going up by 6% to 8% year on year. And being through that myself personally, you as well, Rhys, making planning, making
• 31:44
  is the best way to combat sort of any stagnation or potential fear of market turmoil is preparing to maximize your returns on the current portfolio and any potential future purchases. Lachlan, we've been getting a lot of requests from people listening to the show that they want to bring back the I Call Bullshit segment. So we agree. We're going to bring it back. So this is the first episode kicking off.
• 32:08
  Back to our roots. But if listeners don't want this segment, please comment. Do or don't bring I Call Bullshit back. I've had three emails in the last week, so that's enough for me. Lachlan, the proposed CGT reform will cook the property market. Do you call bullshit?
• 32:24
  I call bullshit, Rhys. As I've stated before, nothing's ever as bad as what it's made out to be. Nothing's ever as good as what it's made out to be. When you look at the capital gains exemption, there's still a benefit that's gonna be had, right? There's talks that's gonna be reduced from 50% to 33%. We've modeled that out.
• 32:42
  It's not a significant difference when you look at your after-tax take-home. It's still different. It still warrants a conversation. Is this going to turn investors out of the market? No, I think it's going to be a sugar hit of negative sentiment, of which the government's going to obviously put forward to attract voters. Yeah.
• 33:01
  But I think the medium to long-term fundamentals isn't going to have a vast impact on people using property as a vehicle to grow their wealth. Because as it would show, it's still been the primary vehicle for most Australians over the last decade. And I think it will continue to do so. You've been listening to the Folio Property Podcast.
• 33:28
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