What did Scott Pape actually recommend?

Scott Pape advised a cash-poor landlord to sell one investment property to pay for urgent healthcare. His point was that liquidity and wellbeing come before growing a portfolio. Rather than sell everything, he suggested a targeted sale to reduce debt, lift cash flow, and restore financial safety.

How is capital gains tax calculated on an investment property?

Start with sale price minus cost base, which includes purchase price, stamp duty, legal fees, and eligible improvements. If you held the asset for 12 months, individuals usually get a 50% discount. The discounted gain is added to your taxable income and taxed at your marginal rate.

Could negative gearing changes cut my after-tax returns?

Yes, if deductions are capped or limited, your after-tax cash flow could fall. Run scenarios that reduce deductibility and raise rates. If the numbers go negative without a strong buffer, consider refinancing, rent adjustments, or selling the weakest asset to protect your overall position.

How do I decide which property to sell first?

Rank properties by net yield, upcoming maintenance, tenant stability, and after-tax equity after CGT and selling costs. Favour selling low-yield, high-capex assets. Check break fees, settlement timing, and your tax bracket. The goal is maximum risk reduction and liquidity with the smallest impact on long-term growth.

Global Market Insights

Scott Pape March 18: ‘Sell One’ Advice Puts CGT, Negative Gearing in Focus

ByHuzaifa Zahoor March 17, 2026March 17, 2026

Scott Pape has urged a cash-poor landlord to sell one investment property to fund urgent healthcare. The barefoot investor’s blunt advice highlights real liquidity stress in Australia, and it lands as talk of capital gains tax tweaks and negative gearing changes grows. We break down how a sale would be taxed, how policy risk could hit returns, and which numbers to run before you act. Our aim is clear guidance Australian investors can use today, not theory that arrives too late.