Episode 134: Australian Real Estate with My Mate Andrew Gilbert
Summary
Isn’t it fun when you know you like something, and then you find it in a new and different flavor? Well, that’s exactly what happened when we went to Australia: we discovered the “down under” way of our favorite subject of real estate. In today’s episode, family friend and fellow real estate investor Andrew Gilbert educates us on how real estate is different from the US and Canada. As a born-and-raised Australian who married a Canuck, he has first-hand experience in international transactions. We discuss many interesting down under real estate terms such as “negative gearing”, “franking credits”, how auctions play a much bigger role in selling real estate, and how “wholesaling” as an investor is defined differently. Join me and my mate Andrew for an Australian cross-ocean real estate education!
Listen to the full episode :
This Week’s Blog Post:
Exploring Real Estate Down Under
Hi everyone! I’m Dr. Jen, and welcome back to another episode of My Life as a Landlord. Today’s episode is a special one because I recorded it in Queensland, Australia, with my good friend—and fellow real estate enthusiast—Andrew Gilbert. Andrew is a seasoned entrepreneur who transitioned from a long career in chemical manufacturing to real estate investing and development. He’s now leading a 12-unit development on the Gold Coast, and today he shared with me what real estate looks like in Australia—from tax rules to auctions to financing strategies.
Real Estate Terms That Might Surprise You
Australia has its own terminology when it comes to real estate. What we know in Canada as a "strata" and in the U.S. as an "association" is called "body corporate" in Australia. Then there's “franking credits,” which are related to tax treatment of dividends, and “active assets,” which refer to properties used in your own business—qualifying for unique tax benefits. Land tax is another layer of property taxation in Australia, levied on the land value of investment properties over $600,000 in Queensland, and it’s separate from local “rates” (what we’d call property taxes in North America).
The Auction Culture in Australian Property Sales
One of the biggest surprises for me was the popularity of auctions in Australian real estate. Unlike the U.S. and Canada, where auctions typically happen due to foreclosures or legal orders, in Australia, auctions are a standard sales method. They often happen on-site and come with strict conditions—no cooling-off period, deposits required on the spot, and settlement within a fixed time. Andrew explained how these high-pressure sales environments can benefit sellers when there are competitive bidders but can also scare off potential buyers, especially those needing flexible terms.
Tax Strategy and Negative Gearing
We also touched on the topic of “negative gearing,” which allows investors to deduct mortgage interest and depreciation from their taxable income. It’s a powerful incentive in Australia, though controversial. According to Andrew, removing this benefit in the past led to a noticeable drop in property investment—which had a ripple effect on housing supply. This kind of tax treatment, while different from what we see in the U.S. or Canada, shapes investor behavior in fascinating ways.
Development on the Gold Coast and Market Dynamics
Andrew is currently developing a mid-rise apartment building in a prime spot along Southport’s Brighton Parade. He shared the hurdles of development in the post-COVID era—like rising construction costs and stricter lending requirements. But with the area’s growing popularity and the easing of material costs, his project is beginning to look more feasible. As a developer who owns property in both British Columbia and Australia, Andrew also highlighted the subtle but meaningful differences in how real estate is marketed, financed, and transacted between the two countries.
Today’s episode was recorded in Amara on the South Island of New Zealand. Why? Because real estate takes you places. Where do you want real estate to take you? Join me next week for Episode 135 as I walk you through where we are and why this next stop matters. Thanks for tuning in to My Life as a Landlord!