Written by: Frank Days
For the past 18 months I have been writing about my concerns around the governments interference with the investment property space. It was apparent to me that making it harder and harder to attain finance, less and less appealing from a tax benefit perspective, and killing the Golden Goose (foreign investment) was going to create massive housing issues in the future.
Now we add the “Big Australia” agenda into the mix as well, disaster looms for all those not prepared.
Already some banks are moving to win back market share and make the finance aspect a little more appealing to investors by reducing interest rates for investment property. Some developers are offering to pay stamp duty, or owner corp fees to attract investors back into the market. But will this be enough to repair the damage the government has created?
Some developers like Jonathan Hallinan of BPM have pulled back on his residential projects and moving his focus to commercial. Others like Tim Gurner is moving to higher quality projects that will appeal to owner occupiers and downsizers, this doesn’t help the rental market. Nor does the fact that his latest mixed use project has been stymied by “Dick” Wynne after he withdrew all approvals for the Fishermens bend precinct.
So thats the bad news. The good news we have a shared housing product that will allow you to help relieve the affordable housing shortage and make a tidy profit on the way through. Who knows, maybe the government will come to its senses soon and once again provide incentives for high density investment, but even if they do you wont find returns like this:
Investment: $500,000 Nett annual income: $55,000 per annum