21 May 2019
Words
Ben Hall
Now that the election is done and dusted, let’s get on with business
ResortBrokers National Sales Manager Trudy Crooks discusses the implications of a new Coalition Government and what it means for those looking to get into the business of accommodation property.
It was one of the biggest election boilovers in Australian political history and Scott Morrison’s unlikely back-from-the-dead victory at the polls delivered the return of the Coalition to power in Canberra.
As Labor begins its forensic analysis of where it all went wrong, and search for a new leader, local markets and business leaders welcomed an end to the uncertainty that existed in the lead-up to the election.
ResortBrokers National Sales Manager Trudy Crooks discusses the implications of a new Coalition Government and what it means for those looking to get into the business of accommodation property.
Q: That election result was a bit of a shock. How do you see the market playing out in the next six to 12 months?
Trudy: No matter what your political preferences are, there's no denying that the consistency of government is going to give buyers and sellers a lot more confidence. In the lead up to the election, there's certainly been a lot of uncertainty out there and a lot of people just standing still because they were not sure what the outcome was going to be. So whether or not you're happy with the result, I think from a business point of view it's going to be very positive.
Q: Now that Labor didn't win and negative gearing and capital gains tax reforms are off the table, will that affect things?
Trudy: Again, I definitely think it gives people a level of confidence. And in our industry, most people have to sell a house to buy their first business. We do have great retention with a lot of clients within the industry that might own three or four resorts or hotels across the country. But the newcomers into the industry often sell their house to buy themselves a business and a home. So there's no denying that not having negative gearing and CGT reforms in the housing market is going to be good for our industry.
Q: Is it harder to get deals done in this environment?
Trudy: Probably the hardest thing that's happened has been a compounding effect of the Banking Royal Commission, which has meant that a lot of the banks had to look at their internal policies and it's taking some time for these policies to feed through and for people to understand how to get finance and do deals in this market. And obviously again, the uncertainty ahead of the election affected the situation and there was a slowing down in terms of numbers. But within days of the election being decided, the phones started ringing off the hook.
Q: Well, that's good news. Is it difficult for new and existing players to get finance as well?
Trudy: Finance is still absolutely available, but you definitely have to jump through more hoops. The banks are doing more due diligence on people when they're doing lending. And now more than ever, we can't recommend strongly enough that you use industry specialists for whatever industry you are in, making sure that you're using the right people who understand the whole process. This is essential so that you don't spend a lot of time and money trying to invest in things where there's just not financial support.
Q: And for those looking to get into the business of accommodation property, perhaps for the first time, what are the key things that need to be addressed before they dive in?
Trudy: I just think educate yourself as much as humanly possible. Speak to as many people as you possibly can. And again, try and identify the industry specialists and industry leaders in the market and go and talk to them. It’s all about getting your ducks in a row. There's no point in you going out and spending a lot of time looking to buy properties if simply you haven't got the financial capacity or you haven't got pre-approval from finance. Finally, you need to make sure you are getting the best legal and accounting advice possible.
ResortBrokers is holding a seminar on Management Rights Made Easy for those thinking of breaking into the business of accommodation property industry on Tuesday, June 4 in Brisbane.
This informative, informal and interactive event is designed to assist newcomers to the Management Rights industry. Our team of industry experts will be on hand to share their extensive experience, answer your queries and put you on the path to success!
