At Maynard Property Group, we’ve gone through the 2026-27 Federal Budget, pulled out the property data, crunched the numbers, and read the fine print and footnotes so you don’t have to. It’s what we do.
If you are a buyer, investor, or vendor, it has introduced the most significant changes to property investment in decades, with particular impact on high-growth, high-investment areas like the Gold Coast and the Tweed.
While the core of the budget purports to focus on “intergenerational equity,” aimed at curbing investor demand to assist first-home buyers (FHB), it could also lead to a market shakedown in regions with high investor activity, as it’s now less attractive to invest in established properties, aiming to shift the advantage to first-home buyers, while aiming to stimulate new builds.
While the Gold Coast and Tweed are often thought of as high-investment markets, our research shows this is not consistent across all areas of both cities.
For example, in Rainbow Bay-Coolangatta, currently one in four buyers are investors, compared to Surfers Paradise and Tweed Heads, where it can increase to one in three, however, there are pockets on both sides of the border that can run even higher.
But it seems this is about to change, so now is the time to get your ducks in a row.
Here’s what it means for FHB
If you are looking to get your foot on the property ladder on your own, or with family or friends, you are likely to have more success in purchasing an established unit, townhouse, villa, semi-detached, or fully detached house, as they are more likely to be in your price bracket, and there may now be slightly less competition.
Your competition will be other FHBs, downsizers, and usually older buyers using their Self Managed Super Fund (SMSF).
This is because investors now have less incentive to purchase an existing property than a new build, which could help you secure your first home.
From July 1, 2027, negative gearing will be restricted to newly built homes only, while investors buying established homes after May 12, 2026, will not be able to deduct net rental losses against their income.
This means investors who operate a property as a holiday let will find it less financially viable to sell as a going concern, and these may find their way onto the market in the next 12 months.
While there will still be investors, as not everyone purchases a property to negatively gear, some buy a house for capital growth reasons, such as those using their SMSF.
We have already seen a shift with people purchasing properties within their SMSF chasing capital growth, as investors on a high-income with a lot of tax they want to reduce, who previously relied on negative gearing, will more likely purchase new-build townhouses or duplexes, so these properties will experience more competition when on the market.
As you will probably be looking at older properties, we can help you check for red flags.
Developers versus investors
But it won’t only be FHB snapping up established properties. You will have noticed empty blocks in established areas where an older home has been demolished to make way for the construction of townhouses, a pair of duplexes, or a block of apartments.
Known as “infill”, this provides housing in high-demand areas and increases density, and appeals to investors and developers.
Developers, knowing they have more competition to purchase new stock will hope the numbers will stack up more in their favour as they will have deeper pockets than FHB, which will see some areas experience older homes being levelled.
Where to from here?
At this stage, there’s no change to negative gearing for people who currently have investment properties; they can continue to negatively gear, so there’s no immediate incentive for them to sell, and they could be slower to let them go on the market.
However, competition for good quality properties is still about, so we advise buyers to be as prepared as possible so you’re ready to swoop when you find that magic place that feels like home.
Here’s the numbers crunched and the jargon demystified:
- Negative Gearing Overhaul: From July 1, 2027, negative gearing will be restricted to newly built homes only. Investors buying established homes after May 12, 2026, will not be able to deduct net rental losses against their income.
- Capital Gains Tax (CGT) Changes: The 50 per cent CGT discount will be replaced with an inflation-linked model (indexation) and a minimum 30 per cent tax rate on capital gains for assets acquired after July 1, 2027.
- Grandfathering Clause: Investors who owned residential property on the Gold Coast before 7:30 PM AEST on May 12, 2026, are exempt from the negative gearing changes, protecting existing portfolios.
- Reduced Investor Activity: The changes are expected to deter investors from established residential properties, potentially reducing competition for first-home buyers but potentially slowing down price growth in established markets.
- Focus on New Builds: The federal government hopes to stimulate new supply, exempting new-build investments from the strict negative gearing changes.
- SMSF impact: The changes do not impact those who are looking to purchase property within their SMSF, meaning that SMSF property buyers will still be able to purchase established residential property.
Buying a home doesn’t have to be stressful. At Maynard Property Group, Emma and Craig are here to help. If you have any questions, book a no-obligation Discovery Call.
Updated in May 2026