Labor or Coalition win? How will it affect the market?
The May federal election may be the spark needed to ignite action among an indecisive investor market.
We know when the property-cycle is on downward trend, investors feel uncertainty. Investors are unsure whether it’s a good time to buy or sell, second guessing decisions.
But depending on if you think Labor or the Coalition will win the election, your approach may change. Here’s our snapshot on what the experts are saying about real estate ahead of May’s election.
A Labor win makes now a great time to buy
The Illawarra Mercury recently interviewed Real Estate Institute of NSW president Leanne Pilkington who said the first half of 2019 might provide some of the best conditions for property investors in some time, including in areas such as the Illawarra.
This considers the Labor government’s plans to limit negative gearing to new housing from a yet-to-be-determined date after the next election.
All investments made before this date will not be affected by this change.
“So, if investors want to take the opportunity before May, it’s the time to do it,” Ms Pilkington said.
This is especially given that “prices are down…And interest rates are still low,” she said.
A Coalition win supports long term investment thinking
This February, Smart Company magazine interviewed real estate investing advocate Michael Yardney who says, ”perfect timing has little impact if you hold your investment over the long term.”
He goes on to elaborate there are “multiple property markets in Australia…Some still growing, others are poised for growth and some markets will experience falling prices over the next year.”
“Rather than trying to time the market, buy the best assets you can.”
Given this, Mr Yeardney’s inference is a business as usual approach is appropriate, with decisions best based on conditions at the time factored into plans to invest for the long-term.