The Liberal leadership turmoil this week is making a Labor victory at the next election increasingly likely, so what would that mean for the property market?
Brett Gillespie from Ellerston Capital told Australian Financial Review that it would have far-reaching impact, and few people are paying attention.
“It’s remarkable how little attention there is on the possibility of a Labor victory, “ he said.
“There’s one report out from a bank, and that’s an offshore bank. No one is even considering what it would mean.”
Two of Labor’s policies so far on the housing market for the upcoming federal election are to limit negative gearing to new homes only and the adoption of build-to-rent projects, and Mr Gillespie said it could be a game changer for the property market.
“I think it will have a very big impact on the housing market if Labor stop negative gearing, which is in their policy platform on housing,” he told AFR.
“So basically it will be very exposed.”
“It’s a game changer for the whole equity space, the tax cuts aren’t there, negative gearing won’t be there, they’ll be changing the capital gains rules.”
Mr Gillespie said his company Ellerston was preparing for a future Labor government.
“I think you have to be quite flexible and you have to think about who can make money in some of the scenarios.”