Has Labor’s tax reform killed ‘rent-vesting’ for young Australians seeking a foothold in the housing market?

Under the tax changes announced in the federal budget, Australians buying investment properties will lose access to negative gearing from July 2027, making ‘rent-vesting’ less attractive, experts say. Photograph: georgeclerk/Getty Images

Rent-vesting – a popular strategy used by young Australians to save for their first home – could be killed off by Labor’s tax changes on investment properties, experts warn.

Renters have used the strategy to keep living in their preferred area while buying a cheaper property elsewhere, hoping it will rise in price so they can sell and put the profits towards their first home.