Since the 2026 Budget, the question I keep hearing is: what's the best property strategy for investors now? My honest answer surprises people. What worked before the budget still works after it. Here's why, and what that strategy actually looks like.
The GFC in 2008. The Banking Royal Commission. COVID. Now the 2026 Budget. Events like these come across our desk every three to five years, and every time, investors are told the rules have changed forever.
As investors, we do have to adapt to each one. But the strategies we've tried and tested are long-term ones, built to create wealth through property over decades, not to chase whatever the latest settings reward.
"These budgets, or GFCs, or any of those events that come along, are just noise. Keep it the same, get the equity, get the uplift, continue to build that wealth through property."
David Zerna, Property Strategy After the BudgetTo be clear, the budget did change real things, and you should understand them:
We cover the detail in Negative Gearing in 2026: What Actually Changed. The short version: tax benefits now play a smaller role for new purchases of established property. That makes a strategy built on creating equity more important, not less.
Our starting point hasn't moved. We look for well-established property in well-located areas:
From there, property selection does the heavy lifting. The streetscape matters. Street-by-street analysis matters. Due diligence matters. Getting those right is what protects you on the way in.
The question we ask about every property is simple: how do we add value, so that someone will pay more for it than we did? We use three levers.
In owner-occupier areas, buyers will pay for a home that's ready to move into. A new kitchen, an updated bathroom, fresh paint and some landscaping can create a real equity uplift. It's straightforward, and it suits a long-term hold.
This is one of my favourites. Compare three-bedroom and four-bedroom sales in the same suburb. Families with more kids need more bedrooms, and they pay more for them. If you can create a fourth bedroom under the existing roofline, it usually costs relatively little, and it can move the property into the next price bracket.
Buy on a block that's in the right zone, with enough land to add another dwelling. That could be a granny flat, a strata title or a subdivision. The land is what gives you that option, which is why we check zoning and planning controls before we buy, not after.
Each lever works on its own. Combine two or three on the same property, and that's where you see the biggest equity growth. We did this in the 2000s, we did it through the 2010s, and we're doing it in the 2020s. The settings around it change. The fundamentals don't.
Equity you create by buying well and adding value doesn't depend on tax settings. It comes from the right property, in the right street, at the right price, with a clear plan to improve it. That's why a budget changes how we run the numbers, but not what we're looking for.
It changes the tax maths for established properties bought after budget night, so the numbers need to stand on their own without relying on negative gearing against your salary. What makes a good investment doesn't change: well-located land, the right street, the right price, and a way to add value.
A renovation is about creating equity, which isn't affected by the negative gearing changes. The key is buying in an area where owner-occupiers will pay for the improvement, and keeping the renovation cost well below the value it adds.
No. It depends on the zoning, the planning scheme and the site itself. That's why we check development potential during due diligence, before you commit. Book a free 15-minute call to talk through your strategy.
This article is for general information purposes only and does not constitute financial or investment advice. Individual results vary and are not a guarantee of future performance. Please consult a qualified financial adviser before making any investment decisions.
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