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Well the election has finally been decided and the Liberal government is back in power…. some people are happy and some not so much.

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I personally find it funny that every time there is an election people stop investing and wait for a party to form government. If you are waiting on the government to make a decision around your investing, then you have probably got marbles in your head.

To base your investing on whatever party is in power is crazy.

Yes, some parties have better policies towards investors and property purchasing, but most property investing should be with a long term view – where you would look to hold the property for 10 years plus. Unless of course your strategy is to be the developer or you have a short term strategy, where you know the number stack before getting into the investment.

So if you are holding your property for 10 years plus then you are probably going to go through 3 different governments with policies that are not even invented yet – so why wait for the out come of this election??

Don’t get caught up in the media hype and political party spin.

If you are a property investor, then you will probably see more pros come out of the liberals winning the election than another political party. It seems like negative gearing is safe for the time being, but we need to watch how they will tax our super. So for all those that have Self-Managed Super Funds, make sure you have your finger on the pulse. You must also look at what each state government is doing towards property investment. For example, in Queensland they have made the First Home Owners Grant for new property purchases $20,000. The New South Wales state government has introduced a 4% stamp duty for overseas investors on top of the existing purchase stamp duty to slow down the buoyant Sydney market. See the article on the new NSW stamp duty in the Financial Review. Make sure you know what is happening in your state or the state you are investing in.

The biggest plus that has come out of the election for investors is that Negative Gearing will not be effected under the Liberal government. However, in 3 years’ time if we have another election and Labour or another party come into power then the rules may change.

What I’m trying to get across is that if you invest in strong growth areas and do your homework around the location, employment, infrastructure, schools and life style amenities then your investing and property portfolio will grow – regardless of who is in government.

Remember that areas that have land shortages, like in and around the big city centres are going to have the biggest impact on the price uplift and capital appreciation in the property. Actually making the leap and taking action has the biggest impact on your future property wealth. Sitting on the fence will have you saying “I should have bought that” or “I wish I had gone ahead with that”. Also staying in the property market for a long time is what really makes you wealthy.

“Remember – control the things you can control and play within the rules for the things you can’t.”

Chris Pullen