Stapled Securities and Tax Flow-Through

Read Full Blog Here

In this episode, Stuart pulls apart the perennial “REITs vs direct property” debate and shows why they’re not substitutes but tools for different jobs. He explains how A-REITs work (structures, stapled securities, payout rules, typical 30–40% gearing) and why their liquidity and ~5% income appeal can be offset by equity-like volatility and index concentration (think one or two giants driving returns). He contrasts this with direct residential property: full control, the ability to gear up to 100%, negative-gearing benefits while working, lower observed volatility, and returns dominated by capital growth, making it a more potent long-term wealth builder when you buy true investment-grade assets. Stuart compares long-run numbers: REITs ~6–8% p.a. with higher year-to-year swings versus quality residential property targeting ~8%+ with smarter selection and sensible leverage. He then reframes their roles: REITs can be an income sleeve (especially when rates are low), while direct property is fundamentally a growth engine. In the listener Q&A, Stuart clarifies tax treatment for “informal trust” share portfolios for minors who are taxed on income, the pitfalls of penal child tax rates, and what actually triggers CGT when transferring to an adult at 18 cutting through conflicting internet guidance so parents don’t make costly ownership-structure mistakes.

Subscribe via www.investopoly.com.au/email

Do you have a question? Email: questions@investopoly.com.au or for a faster response, post a comment on the episode's video over on YouTube: https://www.youtube.com/@investopolypodcast/podcasts

If you're interested in working with my team and me, discover how we can work together here: https://prosolution.com.au/prospective-client/

If this episode resonated with you, please leave a rating on your favourite podcast platform.

Subscribe to my weekly blog: https://www.prosolution.com.au/stay-connected/

Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog: https://prosolution.com.au/books/

DOWNLOAD our 97-point financial health checklist here: https://prosolution.com.au/download-checklist/

IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.