The Australian property market is in flux, as the Reserve Bank of Australia (RBA) has already hiked interest rates twice this year and is expected to do so again within the next few months. So what will be the impact of this on homebuyers and investors?
The short answer is that there will undoubtedly be some impact, but it’s hard to say how much. While this and further rate rises may generate uncertainty for homeowners and prospective buyers, there are some property market matters Australians can be sure of as we head to the polls on 21 May.
What Remains Certain About Property In Australia?
Even if you are about to buy or sell a home, there are specific facts about Australian property you can take for granted—the land itself doesn’t change. Land titles have been around since colonial times when the British government issued them.
After the election, there’s always speculation about how the new government will affect the property market. Concerned homeowners and prospective buyers want to know what the future holds for property values, and rightly so — property is a significant investment for most people. It’s an emotional one at that.
Many people have been wondering what the election outcome will mean for property prices and the broader economy. The answer depends on what happens once the new government is formed. There are several possible options for how Australia’s next government will be created with a hung parliament.
There are two ways that the government could be formed: either by a formal coalition between parties or by a minority government where one party has to negotiate policy with the other parties to get support for bills that it proposes.
A formal coalition would give certainty to investors, as policies would not change depending on who is leading which party at any given time. But it could also mean that particularly tight budgets might lead to cuts in spending, affecting areas such as infrastructure development and public sector jobs.
If there is a minority government, it would probably mean that no one party controls both houses of parliament. So they would have to negotiate policy with other parties to get bills passed.
This could result in uncertainty over future policy direction, but it might also mean that any political party can affect its priorities if it becomes the governing party.
Election campaigns are extensive but typically focus on economic issues, transport, employment, education, and health and immigration policy. Every party addresses these issues from different perspectives, and it’s worth knowing what they are.
The exciting thing here is that there isn’t any place for real estate in a political campaign. Only very few parties address the real estate issues in their manifestos, and most of them promise to make changes in taxation or regulation.
The current government is led by a conservative party, which promised to release a new tax plan for first home buyers.
This plan was supposed to help young families interested in buying a new house, but they don’t have enough money to do that. The conservatives promised to abolish land tax for first home buyers and provide cash grants when buying a new house.
If you’re planning to buy a home or property soon, please go through the SBS Australia portal to get the best details that might come in handy for your situation. Don’t delay your pursuits because there is a better time coming up for you where things might be more accessible.