Here we go!
Wednesday 06 Jul 2016
Wow. Here we go. In terms of my response to the result (or lack thereof) from the election on the weekend I could simply direct you to my blog from last week, ‘The New Normal’, and leave it at that. But more seriously, what can we expect for residential property market if the country ends up with a hung parliament and Senate mish-mash?
I think there are political and economic experts far wiser than me who remain unsure about what the electoral outcome will mean for the economy as a whole and the property market as a significant contributor to economy and economic stability.
But perhaps that is where the reality of the future can be found. Residential property is, and always has been, a key foundation of economic stability and security even as politics and politicians have changed. Property is often considered a safe haven when there is a storm of uncertainty.
And so it will continue.
Take the last four weeks of the epic election campaign. The Sydney auction clearance rate sat between a low of 75.9% on June 11th up to 78.14% on election day which are fantastically healthy results. No sign there of the unpredictable, elongated campaign impacting the market so why should that change now?
Of course negative gearing is one obvious policy I think will probably become a weapon of debate as the various parties in both houses fight over their mandate and seek opportunities to appeal to different sectors of the population.
But debate doesn’t mean disaster.
There is no reason why the resilience shown by the property market already in 2016 will change now. So watch the politics but don’t be paranoid or persuaded that a change in direction has to impact the property market.
It is still good out there.