With the Federal Liberal Party returned to office for another term in a surprise election result, it’s now clear that Labor’s planned changes to negative gearing and the tax system had a negative effect on voters – as they rejected Labor’s plans at the polling booths.
So, it is back to “business as usual” thanks to another Liberal government but what does this mean for the Sydney property market and investors over the coming winter?
In previous blogs, we have talked about how an election creates a mini property market slowdown and therefore buying opportunities for property investors. Now with Sydney coming off a state and federal election, the longer holiday period between Easter and Anzac Day plus the cooler house prices has created a bit of a ‘perfect storm’, where would be property sellers are preferring to wait and see – which also means that the more motivated sellers are the ones taking action and placing their properties on the market currently.
What Does This Mean For Property Investors?
The short answer is there are good buying opportunities now across Sydney for investors and as we head into winter, this trend should continue, because property moves in cycles and over winter there is a traditional slowdown each year.
Last winter, the number of properties on the market was down 8 per cent from autumn, sales were down 17 per cent and the clearance rate was down seven percentage points.
Given the property market is traditionally slower over the cooler months – there were around 20,450 sales last winter, with winter sales numbers down more than 20 per cent year on year – we expect them to be lower again this year.
A slowing winter market will mean there are some hot deals for property investors and if you need some help, be sure to give the team at Plan Assist a call.