Canna Campbell

And that's why some people it's actually cheaper to rent than it is to go and buy that property.

So those are the sorts of things that you take into consideration.

There's also the holding cost of property as well that do actually eat into that.

the actual gross income that you receive.

So all those outgoing expenses like the strata, the insurance, you know, the property manager, if you have one, the wear and tear, and of course, you know, the interest.

So there's all these sort of come into play, but the two key most important things is consistency and an increase like long-term growth of that rental income.

Take that example of that million-dollar property.

What if 10 years later I'm still only getting $50,000 a year in rent?

That's not an efficient use of your money, is it?

Especially when I can put that million dollars, it's maybe grown in value, yes, and that does come into it, but if we're purely talking income here, it's kind of an important factor that you need to be paying attention to.

Yes.

You know, with these changes, it changes the approach and it is going to change our behaviour around investing in property.

You know, because of, of course, you know, things like capital gains tax as well and then, of course, all the stamp duty, all the expenses of getting into the market.

This is no longer a market where you're sort of jumping in and out of property, obviously with the exception of a principal place of residence, you know.

But for an investment point of view, no, this is very much now long-term buy and hold because

Because, you know, especially if you buy a property initially, you can still technically negatively gear it.

No one's stopping you from doing that.

However, the banks have come out and said, obviously, they're going to be a lot stricter now going forward with negatively geared properties.

But you can, you just, the only thing is you can't claim that property

$20,000 loss, I use that example, off your tax.