Property Costs, Negative Gearing and the Hidden Value of Energy Efficiency

Adelaide’s negative-gearing hotspots reflect the total rental losses recorded by investors, not falling property values. Suburbs including Enfield, Northfield, Clearview and Northgate recorded high collective losses, likely because they combine moderate rental yields with a high concentration of investor-owned properties. Negative gearing reduces taxable income but still means the investor is losing money, so the tax deduction should not be viewed as a profit-making strategy. Reduced investor participation in established housing could worsen rental shortages and push rents higher. Pasted text Energy efficiency is becoming increasingly important, although buyers still often prioritise appearance over practical features such as double glazing, insulation and lighter-coloured roofs. Solar, batteries and upgraded insulation may add “hidden value” to a home, but installing them shortly before selling may not recover their full cost. Existing energy-efficient features should therefore be clearly marketed. Dark roofs can significantly increase heat, particularly in dense new suburbs with limited trees and green space.