September saw the election of a new Federal Government with a clear majority to govern in their own right. This should give some certainty and confidence going forward into the future.
The other interesting aspect is that from July next year, we will have a very different Senate with the commencement of a number of independents and minor party candidates probably holding the balance of power. In my view this is a good thing. I don’t think it is healthy for any Party to have a majority in both houses.
The new Government has inherited massive debts and significant challenges in the economy. It is going to take some time to get on top of these. In my view, Interest Rates are likely to stay low for some considerable time making house buying just that little bit easier. I also think it will take some time for confidence to strengthen in the economy. There are already good signs of this happening.
Considering these things, I can’t see house prices increasing substantially for some time, particularly here in South Australia, which makes it a great time to be buying!
Finally, one of the interesting observations over the past few years is that we haven’t seen the kind of reductions in residential rents that we saw back in the 90’s. Rents are holding well and will continue to do so into the future. We will continue to see gentle rises going into the next few years.
We are looking forward with confidence to the future with a “steady-as-it-goes” outlook.