The Federal Election result has created a wave of optimism in the housing market, with two of the major brakes on activity removed by the Liberal Party victory.
Real estate consumers declined to make spending commitments in the lead-up to the election and the prospect of the Labor Party policy on negative gearing created additional uncertainty. Real estate experts now believe property markets can return to normal and consumers can make decisions in an atmosphere of political certainty.
Tyron Hyde, director of depreciation experts Washington Brown, expects to see a flurry of activity from people getting into the market in coming months.
He says the defeat of Labor and its policies will mean the current negative gearing provisions will remain in place for a long time. “I don’t think we’ll see those changes proposed again in my lifetime,” Hyde says.
Mortgage broker Louise Lucas of The Property Education Company says it’s now “full steam ahead” for property investors who were worried about the prospect of a Labor victory and changes to negative gearing.