Performance Property

𝗔 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘀𝗵𝗼𝘂𝗹𝗱𝗻'𝘁 𝗯𝗲 𝗹𝗲𝗳𝘁 𝗼𝗻 𝗮𝘂𝘁𝗼𝗽𝗶𝗹𝗼𝘁.

As a portfolio grows, circumstances change.

Markets move. Investment priorities evolve. Individual properties can perform differently from expectations.

That makes regular portfolio reviews an important part of long-term property investing.

A review can help investors step back and consider the bigger picture:
• Is the portfolio still aligned with the original objectives?
• How are the individual properties contributing to the overall portfolio?
• Has the balance of the portfolio changed over time?
• Are there opportunities to improve the overall strategy?

The purpose isn't necessarily to buy more property.

Sometimes, the most valuable step is simply understanding where the portfolio stands today, and whether it is still working towards the bigger picture.

𝗪𝗵𝗲𝗻 𝘄𝗮𝘀 𝘁𝗵𝗲 𝗹𝗮𝘀𝘁 𝘁𝗶𝗺𝗲 𝘆𝗼𝘂 𝗿𝗲𝘃𝗶𝗲𝘄𝗲𝗱 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼?

Explore a more strategic approach to property investment with Performance Property.

https://ap1.hubs.ly/H01nVQS0

We were delighted to recently join CBRE's Talking Property podcast for a conversation on how the property investment landscape is evolving.

A big thank you to 𝗞𝗮𝘁𝗵𝗿𝘆𝗻 𝗛𝗼𝘂𝘀𝗲 and 𝗜𝗻𝗴𝗿𝗶𝗱 𝗙𝗶𝗹𝗺𝗲𝗿 for having our Co-Founder and Director, Phillip Almeida, on the podcast and for such an insightful discussion.

In the episode, Phillip and 𝗜𝗻𝗴𝗿𝗶𝗱 explore how private investors are adapting to changing market conditions, from the continued role of residential property to the growing interest in commercial assets, and why building a successful portfolio is ultimately about looking beyond short-term noise and taking a considered, long-term approach.

They also discuss what investors should be looking for beyond headline yield, the importance of diversification and asset quality, and some of the opportunities emerging in the current market.

Thank you again to the CBRE Asia Pacific team for having us.

Listen here: https://www.cbre.com.au/insights/talking-property-with-cbre/property-wealth-rewired-private-investors-adapting

Property Wealth Rewired: How Private Investors are Adapting How changing tax settings, higher interest rates and market uncertainty are reshaping investor strategies.

𝗠𝗔𝗥𝗞𝗘𝗧 & 𝗟𝗘𝗡𝗗𝗜𝗡𝗚: 𝗪𝗛𝗔𝗧 𝗣𝗥𝗢𝗣𝗘𝗥𝗧𝗬 𝗜𝗡𝗩𝗘𝗦𝗧𝗢𝗥𝗦 𝗡𝗘𝗘𝗗 𝗧𝗢 𝗞𝗡𝗢𝗪

The property market is shifting — and so are lending conditions.

We recently sat down with Phillip Almeida, Director & Co-Founder of Performance Property and our broker partners at The Australian Lending & Investment Centre, alongside 𝗠𝗮𝗿𝗸 𝗗𝗮𝘃𝗶𝘀 and 𝗗𝗮𝗺𝗶𝗮𝗻 𝗕𝗿𝗮𝗻𝗱𝗲𝗿, to discuss what’s happening across the market and how current lending conditions are influencing investor decisions.

In the conversation, we cover:
• Where market conditions currently sit
• What’s driving activity
• How lending criteria and rates are affecting investors
• Refinancing and new lending options
• What this could mean for investors in the months ahead

Whether you're considering your next investment, refinancing, or simply want to understand what’s changing, this conversation provides useful context from both the property and lending perspectives.

Watch the video to hear the full conversation.

Watch here: https://ap1.hubs.ly/H01n0FR0

Performance Property and ALIC on the market and lending

Property investors have spent decades treating new builds as the asset you buy when you don't know better. The proposed negative gearing reforms may be about to make that snobbery expensive.

The headline debate has focused on house prices. The more consequential shift is happening inside investor borrowing capacity.

Our research division's analysis suggests borrowing capacity on established property could fall by as much as 20 per cent once lenders stop crediting negative gearing benefits in serviceability assessments — the difference, in practical terms, between a $700,000 acquisition and a $560,000 one.

Let me be clear about what our data actually says: established property outperforms new builds — by roughly 2–3% per annum in the same market. That's not in dispute. New estates inject supply, and supply moderates growth.
But growth rate was never the only line on the ledger.

New builds attract substantially higher depreciation deductions, valued at today's construction costs. Combined with the retained negative gearing treatment under the proposed changes, a well-selected new build sits close to cash flow neutral at long-term average rates. For investors already holding two or three established assets, that's the difference between continuing to accumulate and being forced to stop.

Cash flow is the constraint that stalls many investors — not the desire to build wealth.

The caveat is selection. New build corridors live and die on underlying demand. Our data shows development suburbs in QLD, SA and NSW matching or exceeding their nearest capital city across recent growth cycles — but only where vacancy rates, population inflow and affordability support the broader market. Buy into a corridor without those fundamentals and no depreciation schedule will save you.

Established versus new was always the wrong fight. Most portfolios will end up holding both: established for the long-term compounding, new builds to stay in the market when cash flow would otherwise force a halt. The order matters more than the ideology.

Full analysis on the blog : https://ap1.hubs.ly/H0167w70

*𝑮𝒆𝒏𝒆𝒓𝒂𝒍 𝒊𝒏𝒇𝒐𝒓𝒎𝒂𝒕𝒊𝒐𝒏 𝒐𝒏𝒍𝒚, 𝒏𝒐𝒕 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍 𝒂𝒅𝒗𝒊𝒄𝒆 — 𝒚𝒐𝒖𝒓 𝒄𝒊𝒓𝒄𝒖𝒎𝒔𝒕𝒂𝒏𝒄𝒆𝒔 𝒅𝒆𝒕𝒆𝒓𝒎𝒊𝒏𝒆 𝒚𝒐𝒖𝒓 𝒔𝒕𝒓𝒂𝒕𝒆𝒈𝒚*

The new-build tax carve-out is quietly rewriting investor strategy​ Could investors lose up to 20% borrowing power? Learn how the proposed new-build tax carve-out may reshape long-term property investment.

One of the least discussed aspects of the proposed reforms is how market behaviour itself may eventually offset part of the initial cash flow pressure.

As investor participation declines, rental supply can tighten further. In supply-constrained markets, that often places upward pressure on rents and accelerates the transition of negatively geared assets toward neutral or positive cash flow positions.

At that point, the value of the deduction mechanism itself naturally becomes less significant.

For investors already holding well-selected residential assets in constrained markets, the long-term portfolio impact may look materially different from the short-term public narrative.

Historically, the investors most affected during policy cycles are often those who:
• Exit during uncertainty
• Delay action waiting for perfect clarity
• Focus solely on headlines rather than underlying market fundamentals

By contrast, long-term investors tend to focus on structural supply, demand, and portfolio positioning across the cycle.

The policy conversation matters. So do the underlying property fundamentals
driving long-term performance.

What do you think ultimately drives stronger long-term outcomes — policy settings or supply-demand fundamentals?

Click the link or scan the QR code to speak with our team.
https://ap1.hubs.ly/H011Vrf0

𝗪𝗵𝗮𝘁 𝘁𝗵𝗲 𝟭𝟵𝟴𝟱 𝗱𝗮𝘁𝗮 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝘀𝗵𝗼𝘄𝗲𝗱.

We previously discussed what occurred when Australia last removed negative gearing.

Today, the focus is on the numbers.

Between 1985 and 1990, capital cities experienced significant increases across both rents and residential property prices.

Five-year rent growth included:
• Sydney +70.68%
• Melbourne +50.42%
• Brisbane +40.29%
• Adelaide +42.37%
• Perth +61.40%
• Hobart +33.10%
• Canberra +44.37%

Five-year median house price growth included:
• Sydney +90.30%
• Melbourne +72.37%
• Brisbane +90.65%
• Perth +119.2%
• Hobart +118.96%

Combined capital city averages over the same period:
• Rents +45.85%
• Houses +75.59%
• Units +56.77%

One important difference between 1985 and today is the starting point of vacancy rates.

During the 1985 reform period, several cities entered the cycle with vacancy rates above 4%, allowing more capacity within the rental system before pressure intensified.

In 2026, many Australian capital cities are already operating below 1.5% vacancy before the reforms have even commenced.

The implication is that rental market pressure may emerge materially faster this cycle than it did historically.

Our research division currently expects 10–15% annual rent growth across supply-constrained markets over the next several years.

𝗛𝗼𝘄 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸 𝗰𝗼𝗻𝘀𝘁𝗿𝗮𝗶𝗻𝗲𝗱 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀 𝗰𝗼𝘂𝗹𝗱 𝗶𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗰𝘆𝗰𝗹𝗲?

Click the link or scan the QR code to speak with our team.
https://ap1.hubs.ly/y0-Hly0