So much focus on the Reserve Bank this week… and what a week for property owners. That 0.5% rate reduction on Tuesday was music to our ears, and whether the banks played good guys or not, this is a win for every one involved. Those banks holding onto some of the spoils will hopefully start lending again – so that too will be a great result.
What you didn't see in the press is the impact the idiots running our country have on our property. Every time there is an election, the property market stalls. We were essentially in election mode all of 2011 - and again this week we have been plunged into that same mindset. Add constant public displays of Government incompetence to an entirely new, poorly timed and possibly unnecessary Carbon Tax (being introduced by a totally dysfunctional government) and little wonder the market is floundering.
So...Toop Tip #1: immediately go to the polls, get a clear mandate sent from all of us; #2: put a hold on the Carbon Tax IMMEDIATELY (revisit this when the effects of the global financial scene are known and stable); #3: create a real stimulus by focusing on investment in long term generational type infrastructure projects to provide a future for our kids; #4: support other big projects like Roxby by simply getting out of the way in a responsible but supportive way; and #5: get our leaders focused on the future and stop squabbling about the past.
Anyway, I have never been a political animal, but I am ashamed of the way we are running our amazing country and today, it is directly impacting on all property owners. I believe the impact of such hopeless leadership is more profound than interest rates and should be talked about when discussing property market conditions.
So if you agree with me, how do we leverage this theory/belief?
An election will trigger a positive property outcome. If you combine falling interest rates and low supply of new stock with falling values, it adds up to the bottoming out of the market. If we get an election with a definitive change in direction, I believe the international issues will become less important and Australia will get on with things immediately, and property owners will have begun a new cycle.
Bring on a real election!
In the mean time, Toop&Toop are totally forward focused and we are all over this market, introducing more innovation and rebuilding the business for the future. We are totally results focused for our clients...so if you are serious about selling, we want to hear from you right now!
Anthony Toop Follow me on Twitter: @Anthony_Toop or call 0418 824 188