The election is finally over and what a relief. Australia has made its decision! Liberals are here to stay, as is negative gearing!
For the past few months, the atmosphere surrounding the property market has been dismal, uncertain and unenthusiastic. Though we have stated since the drop that it is a buyer’s market and the perfect time to invest, Saturday’s election results give us further confidence.
With the Labor party defeated, plans to limit negative gearing to new houses and reduce the capital gains tax discount are no longer in the works. Which is good news for property investors!
So what will be taking place? Scott Morrison plans on pouring $100 billion into transportation infrastructure as well as making it easier for first home buyers to purchase property.
Let’s break that down.
What does $100 billion in transportation infrastructure mean? Money will go towards upgrading roads, building commuter car parks and improving public transportation (trains, buses, etc). Why do we, as property investors, care? Because improved infrastructure will lead to growth, growth requires more housing, more housing keeps us busy.
What is the First Home Loan Deposit Scheme? Deposit requirements will drop significantly, first home buyer’s will now be able to purchase property with as little as a 5% deposit. This means some lenders will provide loans on a 95 percent loan-to-value ratio.
This scheme will be made available to 10,000 first home buyers annually. Singles must make $125k annually, however, couples can have a combined income of $200k. These loans will be available through both small and private lenders beginning in January 2020. Scott Morrison said it is a bid to ensure competition on price for Australian borrowers.
Now, what will happen to the property market between now and January 2020? No definite can be given, but market prices will likely become more steady or go up!
Use this knowledge to get ahead and invest now before the market becomes stable or improves. The buyer’s market we have doted about for months will become a distant memory, and financial opportunities will be missed.
We at DDP were genuinely concerned for Australia had Labor’s disastrous policy gone ahead. Our nation would have potentially plummeted into a housing crisis. Common sense prevailed, meaning now is the time to act!
Real Estate is one of the safest ways to generate wealth. The Australian property market is worth 3 times the stock market, which is enough evidence to show how much we Australians love property.
Zaki Ameer bought his first property for $50,000 and in three short years was able to acquire 15 properties. As an immigrant, securing his future was essential. Now he wants to ensure others have that same security.
We recently helped a client named Nina make $30,000 in equity overnight with no risk. Imagine saving $30,000. How long does it take in your mind? That’s why we believe that you have nothing to lose by just having a conversation with us. There’s no pressure, we just want you to have all the information possible.