The most common question that is coming up from our landlords at the moment is "what is going to happen to our property market in the immediate future?”
Our current political environment is certainly not helping ease anxieties, as it is still very uncertain, who will win the next election.
A Labor government’s policy on negative gearing and capital gains tax is most certainly, going to affect the market in a very direct way.
Many investors are leaving the market now as investment loans are getting harder to procure, as banks aren’t lending as much.
With the increase of interest rates on investment loans and prices falling, we see all of this as a "handbrake” on the market.
Naturally, negative gearing is not as attractive to investors anymore anyway, as the strategy is more suitable for a rising property market, not a cooling one.
The second aspect of a Labor government’s policy is Capital Gains Tax.
For instance, if you own a property for 12 months or more, the capital gains that you pay when you sell the investment property, is currently halved.
Labor have, said that they will stop capital gains tax benefits.
We don’t know who is going to win the next election and what the overall effect will be on the market.
We are urging all our landlords to tighten their portfolios and secure their loans, so that they are in a strong position, should events turn for the worse.
We hope that all of the cooling factors are just an indication of a natural correction, in which case, the market will bounce back eventually.
If you need help with securing your investment loans and increasing your investment returns-
We can assist by helping you access a better investment loan facility, through our trusted Finance Partner, who are currently offering $1,250.00 bonus with an eligible Home Loan Banking Bundle, Refinance or Purchase. Offer available until 2nd December 2018.
Contact firstname.lastname@example.org to find out more.
Tuesday, 30 October 2018