The game has changed: Investors to ditch old playbook as reforms reshape market 

According to O’Neill, since the budget, the investor game has changed.

He said that, in 2026, investors should seek out infill housing developments to ensure long-term growth, prioritise cash flow to take advantage of strong rental yields, and be selective with quality if they want to hold for the long term.

Highlighting the issue with negative gearing, O’Neill said that it had justified investing in a poor asset and taking a lower cash flow than what investors should accept.

“The result of that in economics is you end up paying more, so there is a reason why they removed it,” he said.

With negative gearing now limited, O’Neill said many investors will be seeking to capitalise on new builds in outer-fringe suburbs, and purchasing house and land packages at low price points.

However, he warned that developers will be seeking to build thousands of new dwellings in some areas, decreasing scarcity and the ability for long-term value growth.

To make the most of land and house packages, O’Neill suggested going for “infill” developments, which were projects contained within already-established suburbs, as opposed to urban fringes that could be further built out.

“There’ll be a lot of those popping up. They’re good deals, you’ll get your full depreciation benefits, you’ll get your full cap, negative gearing benefits. Not a bad strategy,” he said.

O’Neill also advised investors to focus on generating regular cash flow, given that stagnating property prices will mean an increase in yields and rents.

“That’s probably better for the overall economy anyway. The property people won’t like that because it’s all about growth, and that’s how they make money,” he said.

However, when prioritising cash flow, O’Neill told investors to carefully consider where they invested, avoiding suburbs far away from cities that didn’t have proven tenant demand.

Additionally, following the slashing of the CGT discount, O’Neill said investors will be far less likely to sell, opting for a “buy and hold forever” strategy rather than flipping for quick equity gains. “The game has changed, buying a house and then flipping it in 10 years time, there’s just so much tax you’ve got to pay, and then you’ve still got to redeploy that capital and pay stamp duty again,” he said.

He said that agent fees also added to those costs, making properties almost not worth selling unless they were held for a long time, creating a slower path to wealth.

Due to the property tax overhaul, he said there would be a different environment for younger Australians trying to get ahead by building an income out of property.

“The old model of buying three or four or five houses, letting them double and then selling them down to pay half the debt off and maybe getting a commercial property – it’s a lot harder than that,” he said.

O’Neill noted that when considering the buy-and-hold strategy, investors needed to take into account the quality of the building, advising them to opt for longstanding dwellings.

“Older buildings – they’re built properly, and they had less restrictions on costs back then, they over-engineered the buildings essentially, and that is important when you’re thinking about holding a property for 40 years,” he concluded.

Listen to the full episode here

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