Green Square Blog

In our final Inside the Square for 2018, I was hopeful the market would pick up again in the new year and that those thinking of selling might wait until after Christmas and take advantage of some refreshed buyers.

So far this year, we haven’t had that little surge that we normally get in February and March. It just hasn’t happened and the market is sideways at best.

But this doesn’t mean there’s anything wrong with local property. It’s important to understand that the market is up against a couple of external factors that can’t be helped.

First, it’s a double election year. Whenever there is an election, people park themselves on the sidelines because they want to know what they are in for before making big economic decisions- and they don’t come any bigger than buying and selling property.

We’ve spent the first part of the year waiting for the NSW election, which looked like coming right down to the wire. Once that was over, we spent a couple of weeks waiting for the federal budget to be passed down and soon we will know when the federal election will take place. All up, it looks like being five to six months of uncertainty to start the year.

People are hearing that if Labor gets into power, it will look at changes to negative gearing and superannuation; so understandably, property investors have been cooling their heels and waiting to see what happens.  Green Square is an investor-heavy market, so we are particularly affected.

The other external factor is the lending situation. There has been talk about a potential rate cut or two this year, which will be great for existing mortgage holders, but they could cut the rates all the way to zero per cent and it wouldn’t matter unless banks eased lending restrictions. Lending is how banks make their own money, but they are doing it far less at the moment. They don’t want any risk involved.

 

Published by Trevor Back

Principal, Raine & Horne Green Square

Phone: 0428 006 900

[email protected]

 

 

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