With the elections done and dusted, duplex home buyers should prepare for a shorter shallower price downturn in Australia’s property market.
If there is a question that’s been asked frequently by duplex home buyers during this year’s elections is how the results will affect our (Australia’s) property market. It is with this that we’ve decided to share with you this special election edition property post. Below we look at what the election results mean for duplex home buyers. In particular, we’ll focus on what duplex home buyers can expect with Scott Morrison’s coalition government.
What Duplex Home Buyers Can Expect
Scott Morrison’s government re-election in the just concluded elections was very important to Australia’s property market. In case you had any doubts about this, just look at the stocks. They results sent stocks in Australia to an 11-year high. But why is this? Well, they defeated the Labor party.
If you were keen during the campaigns, chances are you are well aware of reform proposals the Labor party had presented. One such reform proposal was their negative gearing and capital gain taxes. Many in the market saw reforms proposed by the Labor party as detrimental to any market. In case you are wondering why this is so, well, it all has to do with the uncertainty the reforms would have in the market.
In any property market, uncertainty is bad as it tends to create false perceptions. These false perceptions are mainly on property prices. For duplex home buyers or even sellers, false perceptions do have serious effects especially when it comes to planning for a purchase. By winning the re-election, Scott Morrison’s government has brought certainty to our property market. And if there is something property markets love worldwide is certainty. With certainty in the market, all parties involved including duplex home buyers, investors and so on are able to make precise decisions for the near future. Furthermore, it makes it easy for them to plan ahead.
With election results now clear, property prices are another thing duplex home buyers can look forward to. Why is this? Well, the election results as already mentioned brought with it a sense of certainty. With certainty, the possibility of Australia’s housing market picking up increases significantly. In addition, it does give some indication as to where property prices are going. For duplex home buyers, this is valuable information as it gives an indication as to how much they’ll need to invest.
Currently, property experts in Australia expect property prices to increase with Scott Morrison’s coalition government. While speaking with the media, Gareth Aird, Commonwealth Bank Senior economist stated that with the election now over, expect the bottom of the market to end very soon. He went on to add that we are fast approaching a peak-to-trough price forecast of 15%. This percentage is forecast to rise even further due to two things, one, with the Labor party, defeated, reforms to negative gearing as well a capital gains tax were squashed. Two, there is a high chance that we are gearing towards an interest rate cut.