Join Australia's most dynamic and respected property investment community

If labour get in , will Sydney have a mini boom ?

Discussion in 'General Property Chat' started by See Change, 24th May, 2016.

Tags:
  1. See Change

    See Change Timing Lord Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,146
    Location:
    Sydney
    We're planning on selling a unit in Manly to clear debt in our Super .

    Lease ends in mid july and plan is to do reno and sell .

    But , If labour get in , will there be a mini boom in Sydney leading up to the end of negative gearing on existing properties ( 30th June 2017 ) .

    If so , should we hold and sell in feb 2017 which is typically a hot time in the market .

    With Negative gearing ending , that may even be a further decrease in the number of properties coming onto the market which in Manly is at a almost historical low ...

    Thoughts appreciated

    Cliff
     
  2. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    I can't see how; wages have stalled, interest rates are dropping, unemployment isn't dropping.
     
  3. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    400
    Location:
    Sydney
    I don't think so. People may think same as you do, and want to sell before the price drop. Once people realize there's a 2 tier market and like second hand cars their second hand properties are not worth as much as new (to buyers) , it's going to be interesting.

    Wish they would just abolish it for new properties too.. And keep the market free
     
  4. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,955
    Location:
    Sydney
    It might do... apartment prices had a boom when the end of the FHB grant on existing was approaching. Made the sales quicker. Everything would list and sell within a week. Post the grant, prices didn't drop off after that, I think it was just a slower market though.
     
  5. big max

    big max Well-Known Member

    Joined:
    30th Nov, 2015
    Posts:
    1,038
    Location:
    Gold Coast
    Labour would be a disaster for the economy. So far from a boom, we would likely have a bust.
     
    THX, standtall, SStar and 9 others like this.
  6. hpresident

    hpresident Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    77
    Location:
    Brisbane
    That's only if labour stick you their words.
     
    big max likes this.
  7. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,124
    Location:
    FNQ
    If their legislation agenda passed both houses of Parliament the affect on consumer sentiment would be very negative possibly leading us to a recession for the first time in a generation.
     
    JohnPropChat, 2FAST4U and Leo2413 like this.
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,842
    Location:
    Sydney
    Always has been.
     
    Last edited: 24th May, 2016
    THX, SStar, Hanison and 4 others like this.
  9. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    400
    Location:
    Sydney
    Could be a big jump after the election though either way. Alot of people hold off investing during uncertain times. 2 July people will start looking again.
    This spring should be busy.
     
    Propin and big max like this.
  10. Starbright

    Starbright Active Member

    Joined:
    18th Jun, 2015
    Posts:
    40
    Location:
    Sydney
    It could be like the pre GST period before 30 June 2000 when lots of developments took place. If investors had an intention to buy, they may pull forward the decision. Owner occupiers could hold back though
     
  11. Simon L

    Simon L Investment Property Buyers Agent Business Member

    Joined:
    18th Jun, 2015
    Posts:
    186
    Location:
    Sydney, Brisbane
    I wonder what percentage of voting Australians actually want house prices to crash in this current market...
     
  12. Jennifer Duke

    Jennifer Duke Well-Known Member

    Joined:
    23rd Oct, 2015
    Posts:
    289
    Location:
    NSW » Sydney
  13. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,717
    Location:
    Brisbane..
  14. JDP1

    JDP1 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    2,840
    Location:
    Brisbane
    purely from an economic standpoint, and also individual asset value perspective, a labor win would put the economy back by several years. This is especially dangerous because several years ago, there was something called mining as the safety net. Not as much anymore.
    On the flip side, the RBA will probably cut rates, and the dollar will be quite low to have to compensate for the economic turmoil that will accompany a labor win.
     
    SStar, Hanison, Observer and 5 others like this.
  15. See Change

    See Change Timing Lord Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,146
    Location:
    Sydney
    Unfortunately Andrew Wilson is one of them , and I've been unimpressed with his ability to read the Sydney market over the last 3-4 years ......

    That's another issue . Hopefully for me , a mini boom might be enough to set us up to where we want to be .

    10-15 % in Sydney and 50 % in Brisbane ...

    cliff
     
    Observer likes this.
  16. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    928
    Location:
    Adelaide
    Most of Gen Y but the majority of Gen Y were going to vote Labor anyway. As unpopular as it would be Australia needs some industrial changes around regulations, such as penalty rates. A % of something is better than 100% of nothing but Labor and the unions never understand that until the factory gates are closed and the jobs are gone. I don't agree with all of the LNP policies but sometimes it's better the devil you know.
     
    Bayview, Observer, wylie and 2 others like this.
  17. JDP1

    JDP1 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    2,840
    Location:
    Brisbane
    then Gen Y will be shooting themselves in the foot. Australia will be uncompetitive more so than they are now if labor and unions get in power. GenY jobs of tomorrow ( and not that much into the future really) will depend on this competitiveness.
     
    SStar likes this.
  18. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,722
    Location:
    Sid en e - olympic city
    This is my 02c

    If you really must sell due to economics etc etc (I would hold anything I owned in Sydney and always regret selling), anyway, if that is the course, I would hold off till then (Jan/Feb) ignoring labour and any possible rush to buy.

    Or, maybe look at using one agency to see if they can get you an elevated price once reno is done just before spring, if they can't do well in the 60-90 days, go to someone else you know in the area in the new year.

    I say this because I have seen the low end of the market have a bit of a bounce back, I think people now know about the lending changes and the uncertainty around that has gone, ironically someone I know who really disliked having an investment prior, are now going to buy an investment property.

    With the possible rate cut/s, in your time frame, I would hold till then.
     
    Observer likes this.
  19. VB King

    VB King Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    127
    Location:
    Ho Chi Minh City
    I think some investor purchases will be brought forward, coupled with the first signs of investor lending relaxing - yes, I would put a bet on some upwards pressure - nothing that could be described as a boom though.
    The smart (and it will be the smart investors locking in grandfathering ... At the right price) investors bringing forward purchases will still look for quality stock, smart investors don't have tax as their number one consideration.
    They definitely won't soak up excess OTP "investment grade" crap.
     
  20. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,124
    Location:
    FNQ
    Here's some commentary indicating that there may be a short term spike in investor activity prior to the election. Generally property markets are more subdued prior to elections so it will be interesting to see how this plays out.
    Negative gearing talk spurs investor loans