As Australians brace for possible changes to negative gearing and capital gains tax in the Federal Budget, one Sydney investor is doing the opposite of what many expected: buying more property.
Young Investor Defies Market Uncertainty
At just 34 years old, Arjun Paliwal has built a property portfolio worth more than $20 million across six Australian states and has just purchased his 18th investment property. The CEO of InvestorKit recently bought a $1.15 million property in Morley, Perth, despite growing investor anxiety around potential tax reforms and continued warnings about market uncertainty.
But according to the former Commonwealth Bank employee, fear is exactly what creates opportunity. 'I'm more exposed than most Australians, and I'm still buying. That says something,' he told the Daily Mail.
How a Banker Bought His First Property at 22
Paliwal said his property journey began in 2015 when he was just 22 years old and working in banking. Originally from Wellington, New Zealand, he moved to Australia after taking a gap year and quickly climbed the ranks at CommBank, becoming a branch manager in his early 20s while studying full-time.
'My wife and I jumped on that journey quite early in life,' he said. 'Being in banking normalised debt, lending, budgeting, equity and wealth creation for us because we were seeing it every single day.' Both he and his wife worked in banking and were earning strong incomes early in their careers, which helped accelerate their investing ambitions. 'Helping other people build their financial future made me think - why aren't I doing the same thing myself?'
Building a Multi-Million Dollar Property Portfolio
Paliwal believes one of the biggest mistakes Australians make is 'accidental investing' - turning a former family home into an investment property without any real strategy behind it. 'People become investors accidentally because they move out of one home, keep it, buy another one nearby and suddenly think they've built a portfolio,' he said. 'But both properties were chosen emotionally, not for investment merit.'
Instead, he deliberately diversified across six states including Western Australia, South Australia, Tasmania, Queensland, Victoria and New South Wales. 'There hasn't been a year where everything in my portfolio went down at once,' he said.
Another major lesson, he said, was consistency. 'There also hasn't been a single year since 2015 where I haven't bought property,' he said. 'Some years it was smaller purchases, some years bigger, but I always tried to take action rather than wait for the perfect moment.'
He also credits much of his success to focusing on established houses in areas with strong economic fundamentals rather than trendy off-the-plan apartments or speculative developments. One example he points to is Townsville. 'In 2022, many people would never have considered Townsville,' he said. 'People remembered floods, crime, unemployment and stagnant property prices from years earlier.' But Paliwal said he saw signs the city was turning around, including infrastructure spending, improved investor confidence, strong rental yields and affordable housing. 'What happened afterwards was Townsville became one of the strongest-performing markets in Australia from 2022 to 2026,' he said.
Why Proposed Tax Changes Are a 'Poor Decision'
With growing speculation around changes to negative gearing and capital gains tax concessions, Paliwal believes the government is targeting the wrong people. 'If those changes go through, I think they're a really poor decision,' he said. He argued the reforms could place additional financial pressure on 'mum and dad investors' while making Australia's rental crisis even worse. 'The government hasn't supplied housing properly for decades,' he said. 'Property investors have effectively been helping balance rental supply in this country.'
According to Paliwal, discouraging investors could reduce the number of rental properties available and push rents even higher. 'The more intervention that happens which hurts investors, the more likely rents rise,' he said. 'People will also hold properties longer because they'll need higher profits to justify selling.' He pointed to Australia's low housing supply levels, claiming there are currently 35 per cent fewer established homes listed for sale compared to 2019, as per a report by SQM Research. 'What that means is Australia is extremely undersupplied,' he said.
Paliwal also argued many Australians misunderstand who actually benefits from negative gearing. He said the perception that wealthy investors are using tax loopholes to aggressively expand portfolios does not match the reality of most property ownership in Australia. 'About 90 per cent of property investors personally own one or two investment properties,' he said, referencing data from the ATO website. 'These are regular Australians trying to build retirement income and avoid relying on the pension.'
He also noted that many larger investors already hold property through trusts, self-managed super funds and companies, meaning negative gearing often cannot be claimed against personal income anyway. 'Three quarters of my own portfolio isn't personally owned,' he said. 'So people thinking this is all about wealthy investors getting huge personal tax breaks just isn't accurate.' He further argued that many older investment properties are no longer negatively geared because rents have risen substantially over time. 'Properties today are actually less negatively geared than they were back in 2007 and 2008,' he said. 'To think these changes will suddenly fix intergenerational wealth inequality is wildly mistaken.'
Why the Tax Changes Won't Stop Him Investing
Despite his criticism of the proposed reforms, Paliwal said they would not change his long-term investment strategy. Instead, he plans to continue holding property for longer. 'My strategy has always been long-term,' he said. 'I diversify across multiple states and eventually transition into debt-free commercial property.' He also argued rising rents would eventually offset additional holding costs for investors. 'Negative gearing becomes less important when rents continue rising,' he said.
Paliwal said Australia's long-term housing undersupply remained the biggest reason he stayed bullish on property. 'If you're investing in Australian property, you're effectively betting against the government's ability to supply enough housing,' he said. 'And history shows that's been a pretty successful bet.' He also pointed to Australia's migration levels and strong housing fundamentals as reasons he believes prices will continue rising long term. 'Australia is one of the most desirable countries in the world for migration,' he said. 'That demand for housing isn't disappearing any time soon.'
Top Towns Home Buyers Should Watch
While many Australians focus exclusively on Sydney and Melbourne, Paliwal said there were still affordable opportunities across regional Australia. For younger or first-time investors, he listed several cities and regional centres he believes are worth watching closely. In Western Australia, he highlighted Geraldton and Bunbury. In Victoria, he pointed to Geelong and Ballarat. For New South Wales, he named Dubbo and Tamworth. In Queensland, he believes Rockhampton and Townsville still hold strong potential. And in Tasmania, he said both Hobart and Launceston remain attractive markets. 'There are still family homes in parts of Australia selling between $500,000 and $700,000,' he said. 'But many people never look outside their immediate area.'
Should Young Australians Be Worried?
Paliwal believes many younger Australians mistakenly think tax changes will suddenly make housing more affordable. 'It'd be wildly mistaken to think investors disappearing means property suddenly becomes cheap,' he said. 'Most Australian homes are owner-occupied anyway, so first-home buyers are still competing with other owner-occupiers.' He also pushed back against the growing belief that property ownership is impossible for younger Australians. 'People get stuck thinking every property in Australia costs over a million dollars because that's what they see in Sydney and Melbourne,' he said. 'But there are affordable markets all over Australia.' 'In late 2025, I settled on a property for $660,000,' he added. 'People also don't realise banks are still willing to lend up to 95 per cent in some cases.'
Biggest Mistakes Young Buyers Are Making
According to Paliwal, one of the biggest issues holding young Australians back is refusing to look beyond their own backyard. 'So many people living in Sydney don't realise you can still buy family homes in places like Ballarat, Bundaberg, Bunbury, or Townsville for a fraction of Sydney prices,' he said. He also said many buyers incorrectly believe they need a 20 per cent deposit before entering the market. 'The biggest issue is people don't know what's available to them,' he said. 'Many are paralysed by information overload.' His advice was to stop waiting for perfect conditions and instead focus on building the right support network around them. 'Some people have all the capability in the world but never take action,' he said. 'Building a team and getting the right knowledge is one of the fastest ways to move forward.'
