Coali­tion win helps prop­erty

The Weekend Post - Real Estate - - Front Page -

THE na­tion’s de­ci­sion to re­elect Mal­colm Turn­bull’s Coali­tion gov­ern­ment for an­other term is good news for Cairns prop­erty. The sta­bil­ity of a fa­mil­iar gov­ern­ment and record low in­ter­est rates will help fuel con­di­tions af­ter a stag­nant elec­tion pe­riod. His­tory has shown us that sell­ers can be put off from list­ing dur­ing elec­tion cam­paigns. His­tory has like­wise shown us that once an elec­tion has con­cluded we see a boost in list­ings. More im­por­tantly, the Coali­tion’s com­mit­ment to re­tain neg­a­tive gear­ing in its cur­rent for­mat will en­cour­age in­vestors to con­tinue to buy es­tab­lished homes as part of their in­vest­ment port­fo­lios. Neg­a­tive gear­ing has been cen­tral to in­vestors’ wealth ac­cu­mu­la­tion strate­gies. In­vestors can be con­fi­dent their ex­ist­ing and fu­ture in­vest­ments will hold their ap­peal when they choose to next sell. (The Op­po­si­tion pro­posed re­strict­ing neg­a­tive gear­ing to newly built or off-the­p­lan homes only from July 1 next year.) There’s a short­age of rental prop­er­ties avail­able cur­rently. In­vestors can find gross re­turns of 7 to 10 per cent in pock­ets of Cairns, which greatly out­weighs op­por­tu­ni­ties in other as­set classes. We ex­pect to see a strong last six months of the year with buy­ers and in­vestors head­ing out in force look­ing for well-main­tained and well-priced prop­erty. Ross Moller, LJ Hooker Cairns Edge Hill

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