How property investment could change in 2019
While decreasing Australian house prices suggest that now is not the best time for investors to commit to the property market, the upcoming federal election could spell big changes for property investment as potential investors rush to make last-minute purchases to avoid being stung by the results of campaign promises.
What changes if Labor wins the federal election?
If Labor win, their current plan to end negative gearing for future investment properties (except for newly built homes) means seasoned investors will want to benefit from the legacy rules as they stand. In which case, the number of investors buying is predicted to increase between now and the Federal election, and spike significantly in the time between the election and the proposed policy implementation should Labor win.
How will this affect property investment?
While opponents of Labor’s policy believe it will create economic uncertainty, its supporters argue that it will level the playing field between investors and owner-occupiers (creating more opportunities for everyone) and support the construction of a fresh housing supply (and subsequently more investment opportunities).
Should we wait to see what happens?
What this means is that those looking to get their foot on the ladder should act now to avoid missing out on a great long-term investment to potential investor competition down the line. The same goes for first-home buyers too, as an influx of buyers tends to increase house prices, especially in an auction environment.
Depending on the election results, these changes could be implemented as early as July, or as late as mid-2020, so speak to an agent to better understand how this might affect your area.