Regor44. All developers have to face numerous hurdles in...

Regor44.
All developers have to face numerous hurdles in initially getting their building plans approved and then built.
The height of the hurdles and the length of the track vary greatly depending on Federal, State or Local Government jurisdictions in which they are planning to build.
The weather also can play a big part.
If conditions are sunny and warm, and the track dry, then a near faultless run and fast times can be achieved. But if the climate is turbulant or even threatening, then the height of the hurdles is raised, the distance of the track lengthened, and the chances of stumbling much greater.
I would not make a good weather forecaster, as I rely too much on intuition rather than the science. I see too many storm clouds and sometimes zephyrs can feel like gales.
I don't always get the right balance between appropriate analysis and analysis paralysis.
For example, I can see one such storm cloud building in the hurly - burly of the current election.

If the Opposition was to win and implement its proposed changes to negative gearing my analysis paralysis persona sees a potentailly significant impact for developers. I know that Labor has stated that there will not be any negative gearing changes for those who constuct or purchase a new residence.
Hence my interpretation is that if I buy a newly built investment apartment off the plan,then I can get all the investment benefits of negative gearing.
But when I decide to sell my investment property, any future purchaser would not be elligable to get the benefits of negative gearing. This cuts out a substantial potential market of investor purchasers and, as a consequence, reduces the market value of my property. Awareness of this future scenario may deter me from purchasing in the first place.
But that is not where it ends.
I have suspected for a long while that developers themselves intially purchase ,off the plan, units in their own developments. Their motivation could be to create the initial impression that the apartments are selling like hot cakes, from the day they become available. Also it is my understanding that the banks demand a specific percentage of contracts signed before they advance funds to the developer.
The developer (including Board Members, subsidiary companies, the contracted real estate marketers etc.) purchase apartments to fulfill this obligation, but gradually, as natural sales progress, release them back onto the market.
In growth times this is probably very profitable, but should there be a downturn, their risks are minimised through negative gearing.
With the proposed Labor changes to negative gearing ,the institutional purchaser of these resold apartments would not be elligable for the benefits of negative gearing which, I believe, may reduce the viability of this 'up-front' smoke and mirrors practice.
There have been times where I suspect the extent of this practice has been substantial, and it could impact on developer willingness to invest in apartment complexes.
I realise Labor are not favoured by the bookies to win government,but if they did, they have clearly indicated their changes to negative gearing, and they would have the mandate to proceed.
If my take on it is correct, then it is one more variableto be considered in the attractiveness of large scale apartment developments.