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

Episodes

Episode 453: Has the Wealth-Building Playbook Changed Forever?

For decades, many Australians followed a familiar path to building wealth: buy a home, pay down the mortgage, purchase an investment property, use negative gearing, then start putting more into super as retirement gets closer. But with capital gains tax changes and negative gearing changes reshaping the investment landscape, the question of how to build wealth in Australia is becoming more complicated.

In this episode of The Elephant in the Room, financial adviser James Wrigley joins Veronica and Chris to unpack how the latest reforms could change the strategies people use to build long-term wealth. Property can still play an important role, but investors may need to rethink their property investment strategy as they weigh up higher holding costs, changing tax benefits, cash flow and whether another property still makes financial sense.

At the same time, superannuation investment strategies are becoming increasingly attractive, particularly for those with strong incomes and the capacity to contribute more. James explains why he’s now discussing substantial non-concessional contributions with some clients in their 40s — something he wouldn’t have considered just six months ago. When weighing up super vs property investment, the trade-offs around tax, access and long-term growth now look quite different.

The reforms also have implications for shares, ETFs, trusts and bucket companies, adding another layer to how investors approach their investment portfolio strategy. For some, upgrading or renovating their own home could even make more sense than buying another investment property, while others may need to reconsider how and where they invest outside super.

The conversation also looks at planning for retirement, including whether investors may need to rethink when they sell an investment property. For younger Australians, the traditional property-first pathway may also look different, with superannuation, home ownership, diversified investments and the First Home Super Saver Scheme all potentially playing a role in building wealth.

The takeaway isn’t to stop investing because the rules have changed. It’s to adapt. There are still plenty of wealth building strategies available, but what worked in the past won’t necessarily work the same way going forward. Understanding what has changed — and what it means for your own circumstances — is now an important part of making smarter long-term financial decisions.

Episode Highlights

01:49 – How the Budget Changes Financial Advice

05:19 – Why Super Has Become Plan A

07:33 – Why Trusts Are Losing Their Appeal

10:09 – Division 296: What the $3M Super Rule Means

15:15 – Why CGT Makes Investing More Complicated

19:44 – Will Higher CGT Kill Investment Aspiration?

24:24 – Why Property Still Has a Contrarian Case

28:09 – Could Upgrading Your Home Beat Buying Property?

31:13 – Why Fear Could Keep Sellers Off the Market

36:24 – When Should Investors Sell Before Retirement?

38:08 – Why the First Home Super Saver Scheme Matters

44:38 – Why Parents Are Choosing to Give Wealth Earlier

46:58 – Are Trusts and Bucket Companies Dead?

48:13 – Why Investment Companies Could Replace Trusts

About the Guest

James Wrigley is a financial adviser at First Financial and the author of Retire Life Ready. He has worked in the superannuation and financial advice industry for more than 20 years, including more than a decade as a financial adviser. James is known for breaking down complex financial concepts into practical insights, with hundreds of thousands of Australians following his educational content online.

In this episode, James brings a practitioner's perspective to the latest tax changes, drawing on the real conversations he is having with clients across different stages of wealth creation—from people in their 40s who had planned to buy investment properties, to retirees reconsidering their property holdings and families looking at how to transfer wealth to the next generation.

Connect with James Wrigley

Resources:

Visit our website: https://www.theelephantintheroom.com.au

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Chris Bates