Investors surge back into property market as election looms
Interesting headline from Domain “Investors surge back into property market as election looms.”
I read this story initially with the thought that this really makes sense for a couple of reasons, however the large spike in purchases and signs of a booming market yet again, just don’t seem to be here!
For any would be property investor the time for procrastination is certainly gone. While we still don’t think that we will see a change in the law for negative gearing, in the unlikely chance that this does occur, Mr Shorten and his team is assuring the Australian public that all current rules will be ‘grandfathered” which basically means that there will be no changes what so ever to anyone who owns an investment property before any new rules are introduced.
With this knowledge, it would be quite understandable to see “Investors surge back into property market as election looms” but the on the ground reality for Lime Property Solutions at least is that there has been no major increase in enquiry over the last few weeks and as far as we can see from number of auctions and clearance rates, there are no signs of a rival in house price growth in Sydney and in fact we are still seeing a market in correction with prices still sliding … not something you would expect with a surge of investors heading back to the market.
The recent article states:
“NSW remained the favoured state for investors, with investor activity up 30 per cent over the month to March, an analysis of Australian Bureau of Statistics data by Domain Group chief economist Andrew Wilson shows.”
“Residential investors have stormed back into Australian housing markets with lower interest rates and the prospect of changes to property taxes set to continue to fuel growth in this market segment over coming months,” Dr Wilson said.
While this statement may or may not be true, I’m not quite sure why figures for March are the signal that investors are coming back into the market because of an election called two months later?
I do think Dr Wilson doers a great job of presenting himself as The Expert while constantly supporting and spruiking up the real estate market, particularly in Sydney. I totally agree with the concept of investors surging back into property market as the election looms as it makes such perfect sense for them to do so. We’re just not sure if the headline is a wish for the near future rather than the reality of the day.
Full story: http://goo.gl/I7nGPu
