Property experts are predicting a likely surge in investor activity if Labor wins the Federal Election. A Shorten Labor Government would restrict negative gearing to investors who buy newly-built dwellings and increase the capital gains tax, with the changes to start in January 2020.
Properties purchased before then will be grandfathered, with industry experts predicting investors will act before the end of 2019 to acquire properties that will retain the current concessions.
Award-winning buyers’ agent Rich Harvey of propertybuyer says a Labor win on 18 May might create “a mini boom” with heightened investor activity.
“If Labor wins it will provide impetus for an uptick in the market – a mini boom perhaps – with increased inquiry for established property before the deadline for the removal of negative gearing benefits,” Harvey says.
“That is likely to be combined with at least one cut in official interest rates. The biggest headwind at the moment is tight credit – and once that starts to flow more easily that will be a catalyst for recovery in the big city markets.”
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