00:01Just a short stroll from Sydney's Bondi Beach, auctioneer Clarence White struggles to drum up
00:06pits for a three-story home. No offers were made, despite the attendance of a small group of
00:11prospective buyers and onlookers. Such scenes are feared to become increasingly common after
00:16Australia last month announced the end of property investment tax breaks. Certainly clearance is sub
00:2150 percent, which means it's a tougher market that we're working in, and we basically have to work
00:26with the buyers that turn up and are willing to take action. In a bid to address an imbalance in
00:30intergenerational wealth, Australia will scrap the capital gains tax discount from July 2027.
00:36Negative gearing, which allows investment losses to be offset against taxable income,
00:40will be banned on existing housing. The policy shift is the biggest in decades and has been seen by some
00:46as ending Australia's obsession with property, which for generations has been the primary way to build
00:51wealth. Property investors are now bracing for price falls of up to 10 percent. Data from property
00:56research firm Cotality shows that weekend auction clearance rates nationwide have fallen below 50
01:01percent. That's the lowest since the pandemic, a trend reflected in this 27-year-old property investor
01:08who is holding off on expanding his portfolio for now. I kind of want to see what happens to the
01:12market
01:12and how everyone ends up reacting to it. So I think I'll definitely sit on the sidelines, but I'll watch
01:17it
01:17very closely on what's actually going to happen, because although economists have their thing to say
01:22on what they think is going to happen, no one really knows until the time comes. So I'm always big
01:26on
01:27being reactive, seeing what actually happens, and then playing to the strengths that you're able to find.
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