Selected commentary from Mark Kilroy on property, construction costs, and investment strategy, informed by more than two decades working across Australia, the UK, and the US.
The data tells a very different story to the headlines. 72% of property investors own just one property. 64% earn less than $80,000. The proposed negative gearing and CGT changes target 9.5% of investors, but the consequences flow through the entire rental market.
The headline figures suggest construction costs are moderating. The final accounts of completed projects tell a different story. Fuel, freight, and supply chain repricing are building forward, and most feasibility models have not caught up.
Under the current CGT system, inflation is taxable. If reform strips away the remaining protections without replacing them with anything better, everyday Australians will pay the price.
Most property commentary focuses on purchase. In practice, outcomes are decided later, during the hold, when cash flow pressure shapes behaviour and housing supply.
The real drivers behind cost blowouts are not materials or supply chains. It is labour, productivity, structural inefficiency, and holding pressure.
When depreciation is understood properly, it plays a quiet but critical role in whether investors can afford to hold assets through the most pressured years of ownership.