Let’s Get This Party Started
W0w. What a week it’s been in politics! I mean, did you see this one coming? I have to say I missed it completely. In fact, I was writing a webinar and one of my slides was about the impact of a change of Government.
Labor lost what many thought was the unloosable election. I heard they were out wining and dining the night before, just about popping the champagne.
So, what does it all mean? I can say in my discussions with property advisers that there’s an air of confidence out there in investment land, particularly from my friends in Queensland. I’d heard of one developer who was offered $1 million on a property a few days before the election but held off. He was subsequently offered $1.2 million by the same buyer and eventually took that offer. According to Tyron Hyde, director of Washington Brown, he expects to see a flurry of activity from people getting into the market in the coming months. Further to that, Tyron stated “The election result is the stimulus that investors needed to get back into the market. This will be a major catalyst for this to be the bottom of the downturn for markets like Sydney. The slump in the big cities would have been a lot worse if Labor had won.”
I think property is very much about psychology and there’s no doubt developers in some sectors who are offering good stock are feeling much better about their lot in life this week. In fact, I know of one property group who have been selling in south-east Queensland who have made 5 sales since Monday, whereas that would before have taken six months to sell that many properties.
We aren’t out of the woods just yet. But, with the likelihood of further interest rate cuts and whispers of APRA easing up on monetary policy, we might just have a bit of a recovery! Let’s wait and see.
One thing that we can be certain of is that Scott Morrison is here to stay for the next few years and he will go down in the annals of Liberal party folklore as a true hero!
Until next time, happy investing.