A Positive Outlook For The Property MarketBy Administration Team | 05-06-19
The results are in and to the surprise of many, the federal election returned the Coalition to power for a third term in government.
The past year has presented a clouded property market with both falling house prices and banks tightening on lending restrictions, frightening both buyers and sellers.
The uncertainty that has previously clouded the property market for the past year is now set to clear with promising commitments by the coalition set to impact the mortgage and property sectors and the radical property tax changes proposed by the Labor Party no longer taking effect.
Policies announced by the Coalition are set to offer a boost in deposit for first home buyers, enabling them to purchase their home with a deposit of only five per cent without having to take out Lenders’ Mortgage Insurance. The First Home Loan Deposit Scheme will partner with private lenders and prioritise smaller lenders in a bid to “boost competition”. This will be available to qualifying first home buyers from 1 January 2020. The value of home being purchased determined on a regional basis, reflecting the different property markets across Australia,” Mr Morrison said. This promised assistance is set to focus on improving housing affordability.
The fact that there are no changes to negative gearing or Capital Gains Tax should also encourage investors in a more stable government. Buyers should slowly return to the market with increased confidence - particularly first home buyers with incentive packages on offer and also established home buyers. Whilst prices in property have been declining, the fall is gradually easing.
On another note, the Reserve Bank cut the cash rate to a historically low 1.25 per cent, from 1.5 per cent previously – its first move since August, 2016. The property market dislikes uncertainty and with the announcement of falling interest rates, in conjunction with a more stabilized government, this should result in a boost in market activity sooner rather than later.
If you are interested in learning more about current market trends or would like to know the value of your property, please contact our friendly team at Peake Real Estate on 97075300.