Right now, there are two types of property investors in Australia. Those who bought before 7:30pm on the 12th of May 2026, and those who bought after it. 
And depending on which camp you're in, the entire economics of your next move just changed.
If you already own an established investment property, you're sitting on something the government has effectively locked in for you, full negative gearing, the old rules, preserved.
But here's what almost nobody's talking about. What you do with that property from here can either protect that advantage or accidentally throw it away.
Can you renovate it without losing your grandfathered status? Can you add a second dwelling on the same block? And when you go looking for finance to do any of it, does your bank even understand what you're trying to achieve?
In this episode I speak with Dorian Traill and by the end of this episode, you'll know exactly how to use the property you already own to build more wealth, without stepping on the very tax treatment that makes it valuable in the first place.
We examine how the new rules create different tax outcomes for existing and future property owners.
The conversation explores when renovating a grandfathered property may improve its value, depreciation benefits and investment appeal.
We also look at loan structures, deductible borrowing, construction finance and the risks of mixing personal and investment debt.
Finally, we consider subdivision, development funding and why a clear exit strategy should guide every project from the beginning.
Takeaways
- Grandfathered properties retain important negative gearing advantages
- Tax benefits cannot rescue an underperforming property
- Renovations may improve depreciation and future value
- Loan structures can protect borrowing deductibility
- Mixed-purpose debt can compromise tax deductions
- Repairs and improvements receive different tax treatment
- Demolition may affect grandfathered property treatment
- Construction finance requires careful project planning
- Larger developments may require commercial lending
- Exit strategies should guide development decisions
Links and Resources:
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Dorian Traill, Senior Wealth Planner Metropole
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