The Elephant in the Room
The property podcast for the thinking person.

Episodes

Episode 419: Trust Lending, SMSFs, and the New Property Danger Zone

As 2025 comes to a close, conversations about the Australian property market 2026 are frequently dominated by talk of rapid portfolio growth and aggressive expansion. But rather than following the crowd, this episode focuses on the structural risks quietly building beneath the surface—and how those forces are reshaping the next phase of the property cycle in Australia.

Chris Bates and Veronica Morgan unpack the complexities of investor lending in Australia, revealing why many investors are currently entering a far riskier phase than they realize. While the dream of scaling a portfolio quickly remains popular, the real constraint for many is no longer just finding the right asset, but managing the invisible portfolio risk created by aggressive debt structures. The conversation challenges the idea that a high borrowing capacity is a strategy in itself, arguing that it often masks a dangerous level of overleveraging that only becomes apparent when market conditions shift.

The discussion also explores how property investment strategies in Australia are being influenced by aggressive mortgage lenders and the rise of alternative funding. As traditional banks tighten their grip, more AUS property investors are searching for the best peer to peer lending Australia for investors. Chris and Veronica examine whether peer to peer lending Australia for investors serves as a legitimate tool for flexibility or if it’s being used as a temporary patch for deeper serviceability issues that could leave investors exposed as the cycle matures.

A critical focus of the episode is the reliance on the desktop valuation to justify further acquisitions. Veronica and Chris highlight how paper equity can create a false sense of security, encouraging investors—including those within a property investors alliance—to refinance and buy again based on models that may not reflect on-the-ground reality. This disconnect between paper gains and real-world cash flow is where many portfolios become fragile, particularly when interest rate buffers and rental yields are tested.

Importantly, this episode reinforces why property must be approached with a focus on long-term stability rather than short-term borrowing limits. From understanding how to protect your assets to reassessing your relationship with debt, the discussion centers on building a foundation that can withstand volatility. It’s a necessary reality check on the role of incentives in the industry and why the investor always bears the ultimate consequence when a strategy is built on thin air.

If you’re looking to navigate the lending landscape in 2026—whether you're a seasoned investor or just starting to explore property investment strategies in Australia—this is a grounded, reality-based conversation about the true cost of debt and what it takes to build a portfolio that lasts.

Episode Highlights:

00:00 — Introduction to Property Investing Risks

01:11 — Regulatory Crackdown on Risky Lending

01:46 — The Role of Buyer's Agents and Brokers

03:19 — Trust Lending and Self-Managed Super Funds

12:19 — Instant Equity and Market Manipulation

18:40 — The Pitfalls of Following Bad Advice

24:28 — Questionable Advice from Buyer's Agents

25:32 — Judging Awards and Industry Practices

26:16 — Vulnerable Investors and Risky Promises

27:13 — APRA's Role and Investor Lending Trends

29:31 — Superannuation and Property Investments

35:32 — Private Lending and Market Risks

42:53 — Cross Collateralization and Loan Structuring

48:54 — Conclusion and Final Warnings

About the Host

Chris Bates is a mortgage broker and co-founder of Alcove, working with clients across Australia to help them navigate complex property and lending decisions. Known for his data-driven approach, Chris specialises in long-term strategy, lending structures, and helping buyers avoid costly financial mistakes.

Veronica Morgan is a buyer’s agent and property strategist with nearly two decades of experience advising owner-occupiers and investors. With a background in research, data analysis, and on-the-ground buying, Veronica is widely respected for cutting through market noise and focusing on fundamentals, risk, and long-term outcomes.

Together, they bring a practical, evidence-based lens to Australia’s property market — challenging assumptions and unpacking what actually matters.

Resources:

Chris Bates