Politics & Property

Generally people sit on their wallets for a little while after an election until they see what the govt is likely to do (mostly nothing except protect their jobs as much as possible), so you may find the market will go flat for a few months, maybe a year I suspect.

Having said that, if Johnny gets back in things may just keep plodding along as before. We can only hope.

They have PPoR deductible debt here in the USA, but they also pay around 1% property tax every year. This will be just another "creative" way to get people into property who really can't afford it, and who have run out of options with finance. The carrot will be dangled; "you get a tax break on your mortgage; get into property!"

I don't know that it is a great incentive to have PPoR deductibles unless we can avoid the property tax that no doubt will go with it. And of course, you can bet the Govt won't take away council rates with the new tax. It'll be a double tax.

If this happens, the nett result will be an initial boom as everyone trades up to take advantage of their new deduction, but when the realisation hits that the overall holding costs will be as high or higher than before after all numbers are considered, there will be property slump I'm tipping as the holding costs of owning a property will outweigh the perceived benefit of the new PPoR deductible.