Weekly Market Update - January 18, 2019
By | 18th Jan 19

Your weekly market report by Frank Valentic.

It’s been an interesting start to the year at Advantage Property as the number of enquiries from investors has been very solid and it might be that investors are looking at getting into the market before Labour abolishes Negative Gearing, if they get into power which looks likely now.  The investor numbers have definitely dropped off in the last couple of years as they were a total of 45% of the market at the peak back in May 2015 and now they are only 32% of the market place.

 

As I stated above, there could be a pull forward effect as Negative Gearing may encourage investors to get in because they will be able to lock in negative gearing forever for their property. A recent survey showed that 48% of people objected to the changes and 43% agreed to the change proposed by Labour.

 

In more news for investors, 150 changes to the Residential Tenancies Act will come into effect as of 1st July 2020. Major changes will include allowing pets and allowing tenants to default at least five times on their rent payments and making renovation changes to the property.  This has already had some of our investors say that they will no longer keep their investment properties and sell them.