Winter is Coming … Markets, Politics & Investment Blues…Come in From the Cold

Winter is Coming … Markets, Politics & Investment Blues…Come in From the Cold

Despite the drop in temperatures outside, it seems to us that there is a glimmer of warmth in the post-election investment property market. With proposed policies to wind back negative gearing & capital gains tax incentives, market instability, plummeting house prices, all central issues in this election cycle, there were some ‘icy road’ policies in play and it appears the Liberal National Party had their snow chains on. Whilst some are calling for Quexit and others are googling how to apply for residency in NZ, we like to think the shock return of Government has been a wake up call for all. Let’s focus on what’s ahead and get back to business.  

There seems to be a few factors steering the market towards a rise in property temperatures. 

  • Election over – no more uncertainty. LNP is in and tax cuts are on their way even if they are deferred 
  • Stability means more buyer confidence and investors less spooked by the fear of losing incentives, such as negative gearing. Investor confidence is also up, on the news franking credits haven’t been smudged from the ledger.  
  • Improved confidence and stability should bring back demand and with it a positive lift in the house price mercury to balance out the losses encountered for the first half of the year.  

Whilst the weathervane has been whirling atop of the barnyard of political campaigning, it seems the Finance Sector has also been a flurry of activity. APRA has announced a loosening of borrowing criteria with a proposed cut to serviceability rates which should lead to more buyers getting over the line on finance. Add to that RBA’s fanning the flames of interest cut hopes and, well, we believe the storm cells of the last few months are dissipating.  

So wrap yourself up in your winter woollies and grab a hot chocolate, cosy in the knowledge that Winter in Brisbane is short lived.