but work within the limits of the new

system.

And I think it's important to have a balanced idea about the world that we live in, especially from an investment perspective.

So if we talk sort of anecdotally, around 70% to 80% drop in inquiry for residential established property I'm hearing from big buyers agency firms, right? So their pipeline of work has all but been turned off Now, that can't last.

And we know about Australians that we sort of do tend to jump at shadows and we overvalue short-term impetus or shocks and undervalue what can happen over the long term, right? So...

It's just a bit of a reset now.

So really cash flow was one of those things where people would talk about like, oh, are you a growth or you're a cash flow investor? And, you know, most people really should be looking at growth.

But is there any noise around this being relaxed?

Um, why would you say this is the wrong approach?

I think I would say it's the wrong approach just by what I've seen in my own experience.

I would say that the education around depreciation in the residential space is actually higher than in the commercial space, which is unusual because the commercial space is, is probably more occupied by experienced professionals, finance people.

You know, there's lots of work that happens with, uh, institutional, uh, buyers and, and, and REITs and those sorts of things.

But once you get to a certain level, a lot of these commercial entities or these businesses that have commercial assets really just put a 2.5% depreciation rate across everything.

Uh, and I've seen so many cases where the deductions are just left, thrown in the bin, not maximized.

And, you know, just by sheer experience of what I've seen, it's the wrong approach because your accountant needs to be very, very proactive with it, and there's a million different ways that you can actually maximize those deductions.

Mm

Is that fair or is there some still hanging?

Oh, no, I think broadly speaking, that is fair.

There's still people that are transacting.

There's still wealthy people that don't care about the tax settings and can quite easily stomach a negatively geared property to the tune of $400 or $500 a week.

And that's really the reality.

I think if you're buying a brand new property, of course, you've got the old rules, but brand new is typically where spruikers tend to operate.

It can be a difficult area for people that aren't in the industry to navigate.

you know there's there's an overall hesitancy because there might be a change of government and this might go back to the way it was