Wednesday 28 Nov 2018
Labor’s negative gearing plans and softening house prices are creating a prime market for savvy
For an outsider looking in, reports of ‘doom and gloom’ headlines might make property investment look unattractive; a banking royal commission is causing already paranoid banks to become even more paranoid with their lending, APRA measures are still enforced, and the circling threat of Labor’s tinkering with negative gearing could mean investors lose a helpful tool in the future.
However, experts agree, current conditions are ripe for property investors.
We currently have a stable government, high immigration coming in and we’ve got low interest rates; these are all good signs for investors to be investing.
With media that’s been described as ‘negative’, messages are getting crossed and property investors are being scared as a result, which calls a self-fulfilling prophecy; as more investors are scared by negative reporting, the market declines further.
Looking to the next 18 months to two years, it is predicted the market will keep consistently quiet for the most part, with some outliers possibly experiencing declines up to 50 per cent.
After this period is when property investors should strike.
In order to prepare for this, right now is absolutely one of the best times to be buying from an investor's point of view, so investors need to make sure they have all their financials in check.
The banking royal commission in particular is influencing how the lending landscape is changing, which gives investors the chance to show how fiscally responsible they are.
It is a fabulous time to for those that have already got their finances sorted, their budget sorted, they’ve got a savings plan, … their credit files are clean, so they’re paying their bills on time, because that’s now becoming more important.
Now’s a great time, especially over Christmas when there aren’t as many buyers around, it’s a great time obviously to be bagging a bargain.