The year for property politicking

Sharon Zollner

Davidson expects the extension of the bright-line test to 10 years and removing tax deductibility from investors with mortgages will be a “line in the sand” – after they have had time to take full effect.

The greater immediate impact, he says, could come through perception/psychology that the housing market game has changed.

“Once people start to think the market might not be a one-way bet anymore, a slowdown will beckon.”

This had been anticipated by many economists, due to factors such as LVRs and reduced housing affordability among other things. Some are expecting house prices to fall by 10%.