Weekly Market Pulse - 10th January 2019
Welcome back to our weekly market wrap and welcome to 2019.
What a ride it was over Christmas. Rural residential properties were favourites this year with at least 8 we know of going under contract over the break, yet my favourite property to sell over the break was a beach house at 10 Lihs Street in Elliott Heads. Multiple offers and less than two weeks on the market.
With the Federal Election due before May 19, Labors' Negative Gearing Policy and the banking reforms due to the Royal Commission, it looks like we will see less of the investors in the market buying existing property. Why?
Labor will limit negative gearing to new housing from a yet-to-be-determined date after the next election. All investments made before this date will not be affected by this change and will be fully grandfathered.
This will mean that taxpayers will continue to be able to deduct net rental losses against their wage income, providing the losses come from newly constructed housing.*
The flow on effect from this would see houses prices falling and rents possibly increase to cover some of the shortfall. Right now in Bundaberg it is almost the same cost to own with a mortgage, an average priced property as it is to rent the same priced property.
February & March in realestate are typically slower months, April & May will be slower too this time due to the election, so if you are considering selling and taking steps to do so, I suggest quickening your pace.