We Got Albo.
Will He Give Us What We Need?
Everyone’s obsessing over the election result.
And almost every investor I know is up in arms.
Have we elected the worst government for investors?
It’s the beginning of the end.
I’ve never read so much doom and gloom in my life.
I mean, the exact same government everyone thinks is about to destroy everything …
… just delivered a 17% increase in house prices in its last term
… plus sky high rents.
And that’s after suffering through 3 years of crippling high interest rates and inflation.
But here’s the reality.
Labor or Liberal, if you’re putting your financial future in the hands of either party then you’re in trouble.
Deep trouble.
The only person you should ever rely on is … you!
Your actions are going to have way more impact than anything Canberra ever does.
Unless of course you don’t do anything at all in which case you’re in trouble either way.
Because at the end of the day, the winner of any election is just a politician. Scary, right?
Still, since we’ve got the ALP, it’s worth knowing what’s coming.
Let’s Take A Look At What’s Coming.
For a start there were no major changes to negative gearing which were promised in the past before Labor dropped them like a hot potato.
The major changes are around first home owners and increasing supply.
Now, as an investor, anything which increases supply is kind of bad.
But as an Australian who sees the impact of our chronically undersupplied market, it’s a bad outcome, socially speaking.
Too many people are missing out on housing, and it’s not the society anyone should want. For ourselves or our kids.
Still.
We’re so far behind on supply that we’re not going to catch up any time soon no matter what.
And real estate is still the best game in town.
You can want things to change while being realistic about what’s happening, and if you can’t stop it, you may as well be the one who takes advantage of it.
Here’s What’s In Store For Us Over The Next 3 Years.
A Cut To Immigration … Maybe
The ALP have muttered something about cutting immigration, but haven’t announced anything other than this year, where they’re cutting it from 190,000 to 185,000.
Big deal.
These numbers are going to keep the pressure on house prices up.
A Ban On Foreign Investors From Buying Established Homes For At Least 2 Years.
This is the ultimate headline-grabber, which will do precisely nothing for affordability.
Houses bought by foreigners make up less than 1% of total buyers, and if they have to wait 2 years, so be it.
They’ll still buy.
A Crack Down On Foreign Land Banking
Is this a big problem?
Who knows.
I’d hope the government has some kind of idea of who’s buying what.
And if they don’t know now, they probably never will.
$800m To Expand The Help To Buy Scheme
This is actually pretty useful because it helps first home owners get into the market by guaranteeing their deposit.
Will it increase supply though?
Probably not. But if you’re a first home buyer it could make a difference.
$54M Boost For Prefabricated Homes Technology
Prefabricated homes are going to be big in the future.
Think of a conventional house, only built in a factory.
This technology is taking off, and it’ll mean building homes faster and for less money.
Watch this space, because if there’s anything which boosts supply, it’ll be this.
Mind you, it’s early days for the industry so it’ll take a while before it really takes off.
$10 Billion To Construct 100,000 New Homes For First Home Buyers
This could be interesting.
$100k a home could entice a lot of builders.
Maybe the prefab players as well.
However, with skills still in short supply, even after they fast-track 6,000 new tradies, and long lead times we’re not going to see much activity on the ground until well into the government’s 3 years in office.
Conclusion?
The most disappointing thing about this election was that neither party promised anything radical or brave enough to increase housing supply.
Or to encourage investors into the market.
And with the right vision, we could both increase housing supply and help people like you and me safeguard our retirements with real estate.
Still.
If we collectively realise that there’s more power in our hands than just voting every 3 years, it’s been a win.
Frankly, no matter who won on the weekend, we’re in the golden age of real estate.
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