Where to now for our property market following the Federal Election?

Well, Australia has voted and they have decided to go with the Liberals moving forward. So I wanted to talk to you today about where I see property moving forward over the next 6 to 12 months. What I can say is that now negative gearing is not going to change. We've got a situation where the State and Federal elections, Easter and The Royal Banking Commission are all out of the way. Everything is out of the way! So with people feeling more on stable ground, they will want to be in a position where they'll now make committing to a property a lot stronger than they have for the last 6-8 months.

Looking at it now, the thing that will upset the Investment market is the First Home Buyer market (which is usually up to $1m or just a touch more). The factor that will upset this market the most is the proposed 5 per cent deposit scheme which will allow a First Home Buyer to buy a property with only 5 per cent deposit from January 1st 2020. So what I'm saying is that that part of the market from January 1st is going to get a lot more aggressive. It would have been even more aggressive in that market if negative gearing had been scrapped. But now that the negative gearing ban itself has actually been scrapped, I think where it will start to get more aggressive is resulting from the natural environment; being a stable government, no negative gearing and not too many changes in the housing market through the government infrastructure.

I also think that the banks will start to come back and be in a position where they'll start lending more money because they tend to be more favourable with a Liberal Government.

So what I'm saying is that I picked the bottom of the market in many areas 6-8 weeks ago. From here on, you will find that we will enter into the next upward cycle over the next six months and then we'll be in a position where that will go fairly strongly for up to three to four years.

With everything out of the way now, the hesitancy and uncertainty in the market will also be out of the way. So I think that it is very much the time to buy and actually I think it's probably in six months' time or even a bit earlier that it will be a good time to sell, but then we revert back to a situation that doesn't favour the buyer.


Should you have any queries or would like to discuss further, please don't hesitate to contact me on directly 0419 200 018 or peter@pkproperty.com.au.