The election - a warning to property investors

Elections and potential change of government, whether it’s at a Federal or State level, can influence the economy. In particular, an election can impact the investment cycle and, as I’ve previously described, they can create investment “herd mentality.”

As an investor, it’s important to stay committed to your long-term property plan. Whilst it’s important to know how to navigate through the noise of the media as well as the noise of each party’s promises, of the utmost importance is that you do not become part of the “herd.”

First and foremost, should there be a change in government, the incoming party is unlikely to be complimentary of the previous government’s fiscal stewardship. It’s often in their best interests to paint the bleakest, blackest picture possible of the state of the financial situation, simply because it buys the new government time.

Whilst they’re making changes they’ve got someone to blame! If they get it right, and the economy improves, the new government is seen as the hero. If things don’t go their way, then of course they say, “You should have seen the mess we inherited. We’re fixing things up but it will take a while.”

Too often, all of this political hype can be unsettling and cause property owners and investors to become nervous. Therefore, you must take what the pollies say with a grain of salt. Don’t get sucked into this doom and gloom scenario. You need to insulate yourself from this political “spin” and negativity.

On a positive note, a change of government can become a buying opportunity rather than a panicked selling one. In fact, there are many well credentialed analysts who are predicting that if there is a change of government it may well signal a surge in the market.

What’s important is that being forewarned is forearmed. McCarthy Group is committed to a long-term investment philosophy. Therefore, if at any time you are feeling unnerved by what you’re reading or hearing in the media, then please connect with us.

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