Well it was certainly an unexpected result on the weekend, with the Liberal National Party being re-elected to Government.
I believe this is the best result as far as the Perth property market is concerned, with the Lib’s victory meaning there will be no change to negative gearing and capital gains tax.
This is a big win for the national housing market and will also go a long way to helping the Perth market recover.
In a release on Monday, REIWA President, Damian Collins said “We are delighted there will be no changes to national property taxes. This outcome will provide much needed stability for the WA property market.”
Following months of uncertainty about the impact of the aforementioned tax changes, which led to ongoing caution in the cooling East Coast markets, experts are becoming slightly more bullish, revising their views on property prices, market activity and first-home buyers.
Many are predicting that the Sydney and Melbourne markets will continue to fall, but not for much longer.
Commonwealth Bank senior economist Gareth Aird commented on a recent article published by Domain, “It’s pretty clear to us that the bottom is just around the corner. We had a 15 per cent peak-to-trough price forecast and we’re almost there now.”
With future interest rate cuts widely predicted for the next 12 months and the Prime Minister announcing his party’s plans to make the Australian property market more accessible to first home buyers there is a lot of positive sentiment post-election.
As I outlined in our last update there will be no alarm sounding to let us know we have hit the bottom of the market. When we finally know we will already be on the way back up.
So it makes sense to start the conversation about your next property development project now and stay ahead of the game.
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