New Government, New Market
Expect three new policies that will directly affect us.
APRA are changing the debt service calculator which means you can borrow more. Previously banks had to assess you at a 7.25% interest rate, now they are not bound by that and have discretion. It means you could borrow up to 20%-25% more.
That’s big for investors.
The $10,000 first home buyer guarantee is also a boost to the market. It means they only need a 5% deposit, and the government will guarantee the loan. Expect a flurry of activity in the markets we are in.
The Reserve Bank will reduce interest rates now that unemployment bumped to 5.2%. Most are saying 0.25% drop now and another 0.25% later this year. They want price growth for housing. That’s good for us.
Lastly, yes I said 3 and this is 4, but tax cuts. I haven’t factored them in because the Libs don’t control the Senate, but fingers crossed for an early Xmas present.
These are all positive game-changers. Expect growth in all markets.