How the new government will affect property prices
26th Nov 2013
You may have noticed that we have a new government! Yes, Abbott managed to take down Rudd, so what can we expect, aside from more shots of Tony in Lycra?
The good news is not much change. In fact, less random change than we have had in the past few years. The biggest change we can expect under the new government is an end to the quixotic changes to tax rules and other policies that affect investments.
While there have been suggestions we need to remove negative gearing tax breaks for property investors, many know that this was unsuccessfully implanted in the 1980s and sparked fears of a huge shortage in rental properties.
Tony Abbott has already indicated that he will be very careful about changing laws that relate to property, which is sensible considering that the market is just beginning to rebound after many years in the doldrums. Any move by his new government to change property laws would be likely to have a negative effect on the market, something that they will be very wary of. With budgets tight, we should also not expect any new initiatives or handouts though.
In short, expect current trends and circumstances to continue for the foreseeable future.