Brighter And some

What ScoMo’s unlikely election win means for property

by Justin Watt, CEO 23 May 2019

It’s not often the bookies get it wrong but ScoMo surprised even the betting agencies with his federal election victory last Saturday.

SportsBet is perhaps the biggest election loser. In a supremely overconfident misstep it paid out early a whopping $1.3 million to those who’d back Shorten. Ouch!
As far as election winners, none are grinning so widely as Scott Morrison himself, but doubtless many first home buyers and investors are also pretty pleased.
First up, first-timers are in for some help getting on the property ladder with the First Home Loan Deposit Scheme. Earmarked for a 1 January 2020 start, the scheme will allow eligible buyers to secure a home with a 5 per cent deposit, topped up with a government guarantee for 15 per cent of the loan. In other words, Uncle ScoMo will essentially go guarantor so the banks are happy to lend you 95 per cent of the property value without you incurring mortgage insurance.
Critics point out that servicing a loan of 95 per cent is a tough challenge for lower income earners and saving a full deposit sets up financial habits that put you in a good position to cope with the financial commitment of home ownership. So if you’re interested, investigate this with your eyes wide open.
A coalition government also means no changes to negative gearing or capital gains tax. That’s a win for investors but Labor voters who supported these policies might see it as a missed opportunity to address housing affordability.
Lucky for us in Brissie, housing is reasonably affordable anyway.
Whichever way you voted, the end of the campaign at least brings certainty back to business and financial markets, so to some extent we all win just for having survived another election!
Don’t like your new federal member? Change electorates… view our current listings for sale or talk to us about selling.