New Builds & Negative Gearing. The Opportunity for Investors.

The recent Federal Budget has changed the landscape for property investors, but one thing remains clear: new build properties offer some of the strongest investment opportunities available, with access to negative gearing and depreciation benefits still firmly on the table.

From 1 July 2027, negative gearing for residential property will be limited to newly built homes and established properties purchased before 12 May 2026. For investors, this means new builds, such as house and land packages, are an attractive investment opportunity, offering continued access to valuable tax benefits.

Where the deductible costs of owning an investment property (including loan interest, property management fees, maintenance, council rates and other eligible expenses) exceed the rental income it generates, the property may be negatively geared. Subject to individual circumstances and current tax legislation, these losses may generally be offset against taxable income, potentially reducing an investor's overall tax liability.

Negative gearing is just one of the reasons new builds present a unique tax opportunity for investors seeking long-term wealth creation. On top of negative gearing, newly built homes may offer significant depreciation benefits. Because both the home and many of its fixtures and fittings are brand new, investors may be able to claim substantially higher depreciation deductions compared to an established home. These additional deductions can improve cash flow during the early years of ownership.

Tax benefits, however, are only part of the story. The biggest driver of a successful investment has always been buying the right property in the right location. Australia continues to experience strong population growth, ongoing housing shortages, and increased demand for quality housing. Properties in well-located, connected new communities are attractive to tenants and have the potential to deliver both strong rental yield and long-term capital growth.

At Elba Living, we help investors secure high-quality house and land packages in some of Melbourne's most sought-after and fastest-growing estates. We partner with leading land developers across Melbourne's most desirable growth corridors to deliver value to both investors and discerning tenants. We build homes with features that renters value most, including contemporary layouts, energy-efficient designs, quality finishes, and low maintenance living.

By combining quality construction, carefully selected locations and homes that appeal to today's rental market, we help investors build property portfolios designed for long-term performance.

While the recent tax policy changes have reshaped the investment landscape, the fundamentals of property investing remains the same. A well-built home in a high-demand location continues provide one of the strongest foundations for long-term wealth creation. For investors looking to capitalise on the advantages of new builds, Elba Living offers an investment solution built on quality, location and lasting value.

Disclaimer: This article contains general information only and does not constitute financial or taxation advice. Tax legislation and eligibility requirements may change and vary depending on individual circumstances. Investors should seek advice from a qualified financial adviser or registered tax professional before making any investment decisions.