New regulations proposed in the Australian Federal Budget could reshape the housing market, particularly affecting property investors. Starting July 1, 2027, negative gearing will only apply to new builds, while the current 50% capital gains tax (CGT) discount will be replaced with an inflation-linked approach and a minimum 30% tax on capital gains. Finance experts warn that investors purchasing existing homes could forfeit tax benefits worth approximately $250,000 over a decade. UNSW finance professor Peter Swan cautioned that the government may change rules again, making new properties less favorable once they are no longer classified as 'new'. Strategic Property Group managing director Trent Fleskens noted the policy's potential to distort the market by pushing investors into competition with first-home buyers for new builds, ultimately inflating prices in that segment. Commonwealth Bank senior economist Trent Saunders indicated that the changes could lead to a 3% decrease in house prices, depending on inflation and market conditions. Investors may need to adapt their strategies to navigate these new rules effectively.