The War on Property Investors Has Begun

George Markoski Property investing has actually fundamentally changed. The government has started the war against investors. So we’ve got two wars happening at the moment. With the war in Iran and the war against property investors. There’s going to be two types of people at the end of what’s happened now. There’s going to be one group of people that are going to lose big time because they’re not going to understand the new rules of real estate. And then there’s people that understand new rules of real estate and they’re going to make really good money. When our clients, over the last 20 years, we’ve had over 3,500 members. They’ve all made lots of money. Not one person has lost money in our program. Now with the new government changes, things are going to be very different. George Markoski Our program and what we’re doing because of the fundamentals is actually going to be even more powerful. The difference between what we can do and what the average investor can do now with the wrong strategy is huge. Okay. Hello, this is George Markoski coming to you live. The Positive Property show. And welcome. The war on property investors has begun. Let’s break this down and show you what’s happening. But just to let you know, property investing has actually fundamentally changed. It’s never going to be the same again. George Markoski There’s one of those key moments which is so important because there’s going to be two types of people at the end of what’s happened now recently from the budget, the 12th of May, there’s going to be one group of people that are going to lose big time because they’re not going to understand the new rules of real estate and they’re going to miss out. And then there’s the people that understand new rules of real estate and they’re going to make really good money. And it’s your choice what you’re going to do. Are you going to get educated and become a successful investor or are you going to miss out because the government has started the war against investors and they really changed the landscape considerably. Let’s go through this and show you what’s happening. George Markoski And also later on tonight, Adam’s going to join me and we’re going to be talking about property building and what’s been happening. So what happens next? Jim Chalmers and Albo have started the war on. I was about to say war of terror, but it’s actually the war on property investments, the state of the nation. This is what’s happening at the moment. So Jim Chalmers, he’s been accused of favoring foreign multinationals over mum and dad investors. So basically foreign investors are going to get to keep their 50% tax break on certain investments, but Australians are not going to be able to do that. Isn’t that lovely? So 47% of voters are dissatisfied with the federal budget. I’m curious, type in the chat, are you happy put a thumbs up or you sad and put a thumbs down? I’m very curious. 18% Satisfied. George Markoski 45% Say budget decrease their trust in government. And the trust in government has been going down quite a bit. 61% Expect further tax changes before the election. Voters increasingly expect more tax changes before the election. 61% Believe further poll change is still coming. Investors fear the warm property owners is just beginning and it’s going to escalate. So we’ve got two wars happening at the moment with the war in Iran and the war against property investors. And the fact of it is the government are too gutless to actually do a war on big business that takes billions of dollars profits out of Australia tax free or minimal tax. And instead what they want to do is they want to punish the average Australian who’s actually trying to get ahead. George Markoski But not only that, the fact of it is people in Australia that are working hard at investing, right, instead of just tall Poppy syndrome and attacking them and saying they’re the problem, think about this, right? You work all your life, you pay taxes and then you get the pension. And people that are investing, they’re not going to get the pension, so they’re less of a burden. Society, we need more people like this because we’re not going to be able to fund retirement for everyone, right? That’s the fact of it. So what I suggest everyone does is get off their tall Poppy syndrome seat and start supporting Australians that are trying to get ahead. We really got to get rid of this mentality and really do that. So the housing court is 97,400 homes behind in the last 18 months. George Markoski Housing destruction is already falling well behind target. So the target was 1.2 million and we’re tracking for 97,000 homes behind schedule just after 18 months. Now the CBA forecasts only 885,000 homes delivered by 2829. That is 315,000 homes short of the government’s own target. Nom. Nom means net overseas migration. So net overseas migration is upgraded by another 55,000 people. Thank you, Labor. Immigration continues exceeding government forecasts. Population keeps growing, keeps accelerating while housing supply falls behind. More people competing for fewer homes is worsening the rental crisis. So the Albanese government recently celebrated building 45 social homes. That’s 45, not 4,500, not 450,045 homes right. Now, just to put this in perspective, they’ve actually fixed about five minutes of underlying national demand. Bravo, well done. So labor, you’re doing a great job. George Markoski So what this means for investors, the rules have changed and here’s the new playbook, right? The big tax change most investors haven’t understood yet. You hold property for over 12 months right at the moment and you pay tax only 50% of the gain. Now, the new proposed system they’re putting in is the 50% capital gains tax discount largely disappears. Instead you get a cost based indexed inflation and a possible 30% minimum tax on real gains. This is the highest capital gains tax in the first world. The government’s effectively saying this. If you are going to speculate and make money, we want our cut, right? Meanwhile, inflation slightly pushes property prices higher anyway. The tax man just wants a larger chair at the dinner table. So this is the thing. There’s a window now, a 12 month window for people, right? George Markoski If you buy property before the 1st of July 2027, your gains are split into two tax errors. So growth before 1st of July, old 50% CGT discount applies. Growth after the 1st of July, new index tax regime. So if you buy a new property in 2026, 700,000, the value in January 2027, 780 and then the value in 2023, 1.1. The first $80,000 growth is the old discounted system. The remaining growth is a new system. The line of the sand is the first of July. People waiting the sidelines may end up trapped entirely inside the new tax well. So here’s the twist. New residential properties may still get access to the old 50% CGT discount or the new index system. Now this is a superpower and this is amazing, right? The government desperately needs brand new housing supply. George Markoski So what they want to do is reward construction and punish established property investors. The winners are new builds, house and land, townhouse developments, build to rent projects. Investors acting before 2027. The losers are people using outdated systems and waiting too long. The major property tax changes before the budget. All properties after budget. New builds only before the budget. 50% Discount after budget completely abolished. Now tax on gains effective 23.5% before the budget. Now minimum 30% the new build CGT 50% discount. We get to keep that. And pre May 12, 2026, everything is grandfathered that you already have. So negative giving is completely limited to New builds and the 50% discount abolished and replaced the minimum of 30%. So what’s happening is what you got to do is just recalibrate what you do and then you can take advantage of this tax. George Markoski So 30% minimal capital gains tax. Now this is just not on properties, this is also on shares, on Bitcoin and on startups. And the big issue is startups, because startups are very risky and we need more startups in Australia so we can be innovative and compete with the world. But what’s happening now is we’re actually punishing people that are risking everything starting a business and then we want to tax the shit out of them. And a lot of these people might just go overseas instead and then pay zero capital gains tax. And that’s the issue because we need to retain pallid innovation in Australia and the government is literally pushing people out of Australia now. This is the deal. Banks are already moving against established property investors. So what’s going to happen is there’s going to be two lanes. George Markoski People that buy established property investors, their borrowing capacity is going to shrink quite considerably. Macquarie, they changed their policy on 16 May. Netting is excluded from serviceability calculations. So that means your borrowing capacity has gone down. Westpac are looking at reviewing it 18th of May and other banks are likely to follow. So what’s happening is people’s borrowing capacity to establish property is going to be cut down. When borrowing capacity gets cut down, that affects the ability to buy things and that could actually affect the market. So we’re in a very interesting place here at the moment in Australia, where we’ve got a lack of supply, massive demand. The government has pushed these policies that have completely changed the investment landscape forever. And what’s happening is there’s going to be a lot of turmoil. George Markoski And I’ll give you my prediction at the end of this and tell you what I think is going to happen. So the investor exit opens first home of buyer window and basically first home buyer loan demand has projected to rise where investor loans are invested to and projected to go down. And as I said before, entrepreneurs face the same 30% capital gains tax rate. The rules has changed, the market will too. The next winners will be people that know the new rules. Okay, let’s talk about a case study and a real results. Okay, so I’ve got Jeremy Baghdadlian. Hope I got that right. And if he’s in the audience here, let me know. I’d love to talk to him after this presentation. So this is Jeremy and let me tell you, Jeremy’s story. He bought a property in Beaudesert. George Markoski Two bedrooms, one bathroom, one house. And $364,000 is what he paid. Right. Lovely property. He bought the property in Beaudesert. 3,464 And 20% deposit. So he paid $72,000. Settled in April 2025 for 364. Today, the market value is 565. The current profit is $201,000, and it’s renting for $450 per week. Now, normally when you buy a property, if you get a property 364,000, the rent’s going to be 360. So he’s getting. The rent’s gone up, the property value has gone up, and basically, you know, 201,000 in one year. Now, currently the average Australian makes $105,000 in one year, working 40 hours a week. And then they pay tax on that. And Jeremy has made double that just out of his investment. Okay, let’s finish this slide. And I want to talk to Jeremy. Jeremy, how are you? Jeremy Baghdadlian I’m good, George, how are you? George Markoski Very good. Now, did I pronounce your name right? Jeremy Baghdadlian Baghdadlian. Not too far off. George Markoski Baghdadlian. Hey, that’s. There you go. Easier to repeat after I hear it. Awesome. Jeremy Baghdadlian Yeah. George Markoski Jeremy, I’d like to find out a little bit about your journey. How did you find us? Jeremy Baghdadlian First, I stumbled across your videos on social through Facebook. And after doing a little bit of research and reading Rich dad, poor dad, I thought, you know, enough’s enough. I did have one property in Victoria that was rented out. Wasn’t cash flowing. I ended up selling that before I joined the course. But in a sense, I’m. I’m glad that I did because I don’t think it was the right setup. And it gave me the capital to start up with positive property. And now, yeah, already got one property with some decent capital there, Look. George Markoski So basically you saw me one of these events that you’re on at the moment on Facebook. Jeremy Baghdadlian Yeah, Correct. George Markoski Right. That’s great. So I love the way the circle turns. And in 12 months you’ve made over $200,000. How does that feel? Making 200 grand in 12 months? Jeremy Baghdadlian That’s great, considering I didn’t have to work for it. George Markoski Exactly, exactly. And look, the fact of it is, you know, this is what I say to people. Your number one goal should be to replace your income through property, because once you do that, your world changes. Right? And you’ve made 200 grand in one year, which is probably more than what you earn I’m guessing maybe. What were the hurdles? What was the what? How hard was it? Because we hear all these great stories, you made 200 grand, but surely it wasn’t that easy. Jeremy Baghdadlian Well, having the initial deposit sitting there did make things a lot easier. Obviously you stumble along delays throughout the build. The first house is pretty smooth, I guess, but I know going forward for the next one, I’ll. I’ll hit some hurdles with borrowing capacity and stuff like that, so. But let’s keep pushing on. George Markoski Yep. And what are your goals? Jeremy Baghdadlian Get enough properties under my belt that I can leave work, not have to work full time. George Markoski Fantastic. That’s beautiful. That’s beautiful. What would you say to people that are watching this live now, like you saw something on Facebook 12 months ago looking into this, what would you say to them? Jeremy Baghdadlian Don’t wait. It’s only. It’s only going to get harder. George Markoski Yep. I think that’s very good advice. I appreciate that. Thank you, Jeremy. Jeremy Baghdadlian No problems. George Markoski Cheers. Okay, Adam, we’re bringing in the big guns tonight. Okay. We’ve got Adam here. Adam, hi. Adam Albright Hello, team. How are we all tonight? How are we going? George Markoski Look, going really well. We’ve got a big crowd for you tonight. And the fact of it is, the government has started the war on investors. And the thing is, they may have started the war on investors, but we got a lot of tricks up our sleeve and we’re going to fight back. Right. And the fact of it is, whenever there’s crisis, there’s opportunity. And I want to talk about a little bit about what’s happening at the moment with new houses and old houses and what’s happening the market at the moment we’ve got a two speed property market where Adelaide, Brisbane and Perth are growing really fast and Melbourne and Sydney have stalled. George Markoski And basically what that means is Adelaide, Perth and Brisbane are in the 7, 8 o’clock market, 9 o’clock, where Brisbane, where Melbourne and Sydney, they’re more than 1, 2, 3 o’clock in the morning, right? Adam Albright Yes. George Markoski But there are some suburbs that are right down to six or seven in those cities as well, which are really good. But I think there’s going to be another bifurcation of the property market coming in very soon. And the bifurcation is where they split and new properties and used properties are going to actually part ways and they have since the 12th of May. Now, as we know, here’s a group, we prefer new properties because we get the maximum tax deductions. And, and by investing in new properties, we get an advantage. We get an advantage with negative gearing. Adam Albright Appreciation. George Markoski Yeah, exactly. Appreciation without having to work to fix things. There’s no maintenance, there’s a lot of the value stacks up and it’s been working very well. And our clients over the last 20 years we’ve had over three and a half thousand members. They’ve all made lots of money. Not one person has lost money in our program. Now with the new government changes, things are going to be very different. And our program and what we’re doing because of the fundamentals is actually going to be even more powerful. The difference between what we can do and what the average investor can do now with the wrong strategy is huge. Because not only do now our program, we’ve only got the properties that got the 100% negative yearning. We also got the capital gains tax savings. George Markoski That’s a big game changer because I was doing the numbers before and on $800,000 property, right, if you got a property that’s been owned for one day, 800,000 and then one that’s brand new through us over a five year period, there’s a $300,000 difference in what you have in your pocket out of those two properties if they grew the same 300 grand, 5. I don’t know for you, but for me it’s a lot of money. Adam Albright A lot of money. But I think we’re also going to get a lot of investors playing in our pool now. So I’ve got a few mates of mine who liked the old secondhand property market. Never, never agreed with them, but now they’re all coming over to our site. George Markoski Yes, yes, it’s going to be, it’s. Adam Albright Going to hurt the supply. The supply now because you’ve got all these investors who only invest in secondhand properties and now seeing the advantages of coming over to brand new properties. George Markoski Yep. Adam Albright Yeah. So anyway, so like what I was saying, I think a lot more people are going to start playing in the new field of new properties which is going to do two things, supply and demand and push prices up again. George Markoski Yes, yes. And look, this is the issue. We got one, inflation, right? We’ve got massive inflation. It’s already put prices, possibly prices up. Two, now we’ve got more competition for people wanting brand new properties. So look, the one thing I’ve got to talk about is the fundamentals have not changed, right? What happens is you got policies that come in and out over the years and this is nothing new to me. I’ve been through this many times with so many policies, you know the fact of it is governments change policies. They changed, you know, a while ago, they stopped getting. It was really good. At one stage you could buy properties in every state and get a tax deduction just for flying to that city. Remember? Adam Albright That’s right, yeah. George Markoski Oh, that was good. Adam Albright You just go to Queensland on holidays and. George Markoski Yeah, I still get my holiday house. I mean I had a property in every state and I actually got a tax deduction for going to every place I went to. It was great, which was amazing. Then they cut that out. Then what they did, they reduced tax deductions on old secondhand properties and now they’ve just, you got no tax deductions on these properties at all. It’s finished. So literally what this means and what people have to understand is our strategy is so much more powerful because I get a lot of people ask me about ndis and multiple homes and what do you call it? What do you call this? Yeah, Jewel. Jewel. What are they called? The Jewel things? Adam Albright Jewel K or Jewel lock. Yeah. George Markoski And what I say to people is this, right? The problem with these are, is the only people that want to buy these are investors. Right? Because you’re not going to buy one to live in, are you? A rooming house or a dual key,. Adam Albright A four bedroom sleep? George Markoski Yeah, no, you’re not going to do that. And now the fact of it is the key to investing is capital growth. That’s how you make your money. If you buy dual key NDIs or rooming house, how much do you think is going to go up with these. Adam Albright New tax changes and how much extra you’re paying for it to get those three extra bathrooms and everything? George Markoski It’s just, it’s good, it’s the numbers don’t work at all. Those strategies are dead. And I’m warning people, do not buy these. I’ve warned you people, I’ve warned everyone for 20 years straight now already not to bother. But now it’s become dire and literally you buy one of those, you’re catching a falling knife because the value of that property disappears as soon as you buy it because suddenly there’s no tax deductions after you finish. Very powerful. Now what? We buy well priced properties in the lower end of the market and that’s where all the demand is. And that demand ain’t going to stop. It’s never going to stop. That demand is very powerful. A lot of people are scared about the property market dropping. You hear people talking about 5 or 9%, right? George Markoski But there’s a lot of experts saying that it might drop 5 or 9%. And this is what I’m saying, it may. But the properties that are going to drop are not going to be the properties that we’re getting because these properties are too good value. There’s no way the properties are going to drop. The properties that are bad value, that aren’t valuable anyway. Adam Albright Well, I call it the pyramid. The ones at the top, the exclusive, you know, 1 million to $10 million houses at the top of the pyramid, they’re the ones are going to drop. The ones at the bottom, everyone can afford them. It’s the affordable housing. Exactly. George Markoski No, no. Those affordable. Adam Albright You’re always going to find a buyer. George Markoski No, you always find a buyer. You’re going to be first home buyers, always ready to buy. Because you as an investor, you’re not going to sell your property to an investor. Never going to happen. Therefore, you need to buy a property that someone wants to buy down the track. And that’s exactly what we’re doing, which is brilliant. So I think what we should do is open up the Q and A. Okay, guys, let’s ask the question. Don’t care. Both sides of politics are a joke. Yep, true. Adam Albright Agree with that one. George Markoski A dual K. Duplexes are different. A dual key. You can’t split a duplex. You can split. Adam Albright Yeah, split into two titles. George Markoski Yep. And the fact of it is, if you can split into two titles, it’s much better. Miles ahead because you can’t split into titles. It’s really bad. Easy fix. We get taxed at a hilt. Raised your rent, George, did you make the rent Vesting word? I remember some older videos from 10 years ago that mention it. I don’t know if I made the word up. I probably. Adam Albright You were talking about it 10, 15 years ago. George Markoski I was talking about. Because I was doing it. Adam Albright Yeah. George Markoski That’s why I was living on the beach. And at the time, interest rates were very big and the person that owned it was. Subsidized my rent. I lived on this beautiful house right on the beachfront. You stayed there, Adam, with me. And that was about 15 years ago. And I. I was paying like a grand a week. And the owner of the Property was paying 200,000 a year just to pay for everything. For me, it was great. And that’s because blue chip. Blue chip’s not good return. The guy was losing, but now what’s going to happen? Okay, so that guy was losing 150,000 a year, but he was getting a tax deduction. And theologist so he was making probably a million dollars a year. So therefore that 150,000 he was losing, he was getting a massive tax deduction. George Markoski It didn’t bother him one little bit. Great. What happens now though, with that property? You can’t afford to lose 150, get no tax deduction, get nothing. You get nothing. That’s a big change. A massive change. Adam Albright So that’s why all those investors going to come, all the people who are looking at buying secondhand and they’re going to come over and buy new. George Markoski Yeah, the property market has changed fundamentally. It’s going to be huge. This is a massive change. And I don’t think any government’s going to have the incentive to this because every government likes getting tax dollars. Right. Let’s say liberals get in. They’re not going to change this. You know what? They’re not going to change it. They’re getting free money that the labor get a bad view from because both parties want money out of us. They’re just too scared to get it. So it’s not going to change. That’s the fact of it. Wouldn’t that be property be grandfathered? Yes, yes, it would be. Adam Albright If you bought it. George Markoski If you. No one’s going to sell. Right. The fact of it is if you’ve got a property and is grandfathered, the longer you hold it for, the more tax you’re going to save. And I’m going to talk about property updates once we go in our private group. So I’m going to answer any other questions, then we’re going to private group, then we’ll talk about property updates. The fact of it is it’s costing more to build now and there’s going to be even more pressure for properties because there’s going to be more demand. So the fact that it’s getting properties is actually getting harder, not easier. Isn’t that crazy? Adam Albright Well, especially new properties is harder. It’s going to be a lot more secondhand, which is what the government wants. George Markoski Yeah. Adam Albright Best home buyers to be able to buy. George Markoski That’s right. Someone said a capital gains tax only applies when you sell. Why is it such an issue when best practice is not sell? Yes, best practice is not sell. I agree. And true. The fact of it is I don’t like selling. But sometimes you do need to sell. And the thing is the people that need to sell usually is the young investors that are starting out because you sell one to try to get into a bigger one and things like that. And what the government’s saying is they’re helping young investors, they’re doing the opposite. And that’s the thing. Right. The fact of it is the people that have got lots of properties, they’re fine. And our system, we’re not selling anyway. We’re accumulating property and it keeps going up. George Markoski We don’t want to sell it because why would you sell an asset if it’s going up in value and just. Adam Albright Use the equity to buy something else? George Markoski Yeah. Okay. We’re looking at selling our PPR to buy two investments. Our concern is the timeframe on getting back into the property market then track for a ppr. Look, if your principal place of residence is going to be a second hand property, you don’t have to worry about that as much. What are the general rules? Because Craig and Craig and Tanya were saying about their ppr, I would say that properties that are second hand are going to be actually cheaper to buy because there’s less competition for it. What are your thoughts? Adam Albright Yeah, I agree with you. George Markoski Right. Adam Albright The less people supply and demand, less people wanting. It’s taken all the investors out of the market for secondhand properties. George Markoski So if you look at that graph that I had before, loans for first home buyers and loans for investors, there’s more loans for investors than first home buyers. Right. Investors are the biggest people getting loans. That’s going to change now. But all the CG will also apply when you pass your portfolio to kids after they’re gone. Oh, the capital gains tax. That’s interesting. Good question. What do you think? Adam Albright Yeah, I don’t know that one. I know that they were trying to sneak in like a sneaky death tax there somewhere but I don’t know. George Markoski They tried to do that. Yes. Adam Albright If you owned a Property Prior to 1985 or 1983, there was no capital gains but then it was. Yeah, it’s black, it’s. I don’t know if that one’s black and white yet. George Markoski Accounts are going to make a packet explaining and implementing these changes. Absolutely. The fact of it is it’s pretty simple. But accountants are going to make a fortune because a lot of people don’t. Adam Albright Understand it and people, valuers, people having to value their property by July 1st next year because everyone has to have it. George Markoski Valuation is, the changes haven’t really been put in place yet anyway. That’s the fact of it. So we’ve still got time to see what happens but we’ve got this 12 month window till the 1st of July 2027 that people need to Buy by. Yeah. So it’s going to be interesting. You have two years to sell it and you don’t get tax. There’s no tax. Inheritance. Yet. Good. Jeremy Baghdadlian Yeah. George Markoski Yes, yet. Yet. The government’s going to keep going after our money. Right. And that’s why we have to get smarter. And this is the deal. What’s going to happen in the end. And this is what all the super rich do. The super rich don’t sell. Leah said. I missed that. Do we have to do valuation? No, we don’t have to do valuations. We’re not going to do that. The reason being is what we’re going to do is we’re really going to stick to the formula that the super rich use where what you do is get your equity and get loans against your equity and take your equity like that instead of selling. Because selling is just bad news and costs money and you want to try to avoid it if you can. You’ll own nothing to be happy. Yep, that’s what they say. George Markoski But, you know, part of our group, you know what we say? We’re going to own a lot and then be happy. Yeah, that’s the fact of it. So basically, property prices on new properties have to go up because they cost more to build because of the big war in Iran at the moment and inflation is going to push everything up. What happens if you buy now? Doesn’t settle? It doesn’t matter because the government always looks at the contract date. That’s part of the rules. So the rules are they don’t look at settlement, they look at contract date. Adam Albright And you’re fine up until 27-7-1. George Markoski That’s right. I’ve never met a labor voter. Adam Albright You probably don’t want to. George Markoski Oh, look, the labor voters. Who are the labor voters anyway? I don’t know. Adam Albright Government workers. Are they. Jeremy Baghdadlian I don’t know. George Markoski Immigrants? Immigrants, yeah. Hiding? Yeah. I don’t know. Adam Albright All right, should we go to the next group? Okay, before we get into trouble, let’s. George Markoski Go to our private group. What I want to say to everyone is this. Before we go into a private group, I want to say this to the public group. If you’re listening to this, basically the rules of property have changed and the people that learn the new rules are going to make money. And if you don’t learn new rules, you’re going to miss out. That’s why I’m actually holding a webinar next week called the New Rules of Real Estate to show you exactly how to do it. So if you’re watching this on the socials. Type in new rules and my team will reach out to you and come along to my webinar. It’s a free webinar. It’s free. 90 Minutes. George Markoski I’m going to break down what the changes are, how they affect you, and how you can actually make a lot of money out of this, because that’s the important thing, because there’s going to be two types of people. There’s going to be the people that don’t learn the new rules, and they’re going to be the losers once again. They’re going to miss the next boom. It’s going to be the people that listen to my webinar and watch it, and they’re going to actually make money. Thank you.