Why new builds are back on the table
Under laws passed in 2026, negative gearing for residential property is limited to new builds from 1 July 2027. Properties held at 7:30pm AEST on 12 May 2026 are exempt. New builds also tend to have larger depreciation deductions. Your accountant confirms how this applies to you.
What we test before recommending a new build
- The builder: track record, financial strength, licence and insurance
- The land: location, size, title and how much of the price it represents
- The price: against comparable established properties nearby
- Rental demand: who will rent it, at what rent, and how quickly
- Supply: how many similar new homes are coming in the same estate
- Holding costs: months of construction with no rent
Rothmore has a related party in residential building, Langford Homes. If we ever present one of their packages, we disclose the relationship in writing first, and it must pass the same assessment as any other option. See our Disclosure page.
Common questions
Is a new build always better under the new rules?
No. The tax treatment helps, but location, land value and price still decide the investment.
What counts as a new build?
Generally a newly constructed dwelling that adds to housing supply. Your accountant can confirm whether a specific property qualifies.
When does rent start on a house and land package?
Only once construction finishes, so plan for holding costs.
Related
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.