For Buyer’s Agents working with property investors, the question is no longer simply “Where should I source my client’s next investment property?”

It’s becoming “What type of property now makes the most sense for this investor’s strategy under the new tax rules?”

There’s now much more consideration required when helping clients build a property portfolio.

Properties held before 7:30pm on 12 May 2026 are grandfathered under the existing negative gearing arrangements. From 1 July 2027, however, negative gearing for future residential property investments will generally be limited to eligible new builds.

So what does this mean for Buyer’s Agents?

For clients who already own established investment properties, the answer isn’t necessarily to sell. 

Those properties retain their existing negative gearing treatment, and the fundamentals still matter: growth potential, rental return, holding costs, debt position and how each property fits within the overall portfolio.

But when sourcing the next purchase, Buyer’s Agents may need to think differently.

A high-income investor who values the ability to offset property losses against salary income may now want an eligible new property considered as part of their strategy.

There is also the CGT consideration. From July 2027, the existing 50% CGT discount will generally be replaced with inflation-adjusted cost-base indexation and a minimum 30% tax rate on realised gains. 

Eligible new builds are treated differently, with investors able to retain access to the existing 50% discount as an alternative.

But this doesn’t mean Buyer’s Agents should simply start recommending new property.

A tax advantage can’t rescue a poor investment.

The property still needs to stack up.

Buyer’s Agents need to ask:

Is it priced correctly?

Does the location have strong underlying demand?

What future supply is coming?

What’s the likely rental return?

Who are the developer and builder and are they reputable? What’s their track record?

Does the property have strong owner-occupier appeal for future resale?

And importantly: would you still recommend this property to your client if the tax benefit disappeared tomorrow?

This is where professional Buyer’s Agents can add significant value.

The accountant determines the tax implications.

The broker determines borrowing capacity.

The Buyer’s Agent’s role is to understand the agreed strategy and translate it into the right property purchase through independent research, stringent due diligence and a clear understanding of the risks.

Buyer’s Agents shouldn’t become project marketers simply because investor demand for new property may increase.

Their role remains the same:

Represent the buyer. Protect the client. Recommend the property that best supports their strategy.

This comes with charging a fee for the Buyer’s Agent service and forgoing any commissions from the developer.

The tax environment may be changing.

The fundamentals of professional Buyer’s Agent practice don’t.

Client Strategy first. Property second. Tax benefits should support the investment—not become the reason for recommending it.

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