End of the election signals stability for Canberra’s housing market
Our Chief Experience Officer John Minns has welcomed the end of the election campaign and looks forward to stability for the housing market in Canberra.
“I think the market has been sitting back to see what happened with the election," says John, "particularly the aspirational Canberra investors looking to secure their financial future."
"I think everyone is pleased the election is finished, and regardless of the result there is now some stability going forward," he says.
The election result, while surprising, signals a return to business as usual for our agents.
During this campaign first time home buyers were the target of election promises from both sides of politics. Both parties promised to establish the National Housing Finance and Investment Corporation to administer a First Home Loan Deposit Scheme.
The scheme will guarantee 15% of the deposit for a mortgage, for ten thousand first time buyers. Combined with the abolition of stamp duty for first home buyers in the ACT on 1 July 2019, this scheme may lead to an increase in first home buyers.
"In 30 years in the real estate industry in Canberra, selling first homes to new buyers, most had saved less than a 20% deposit," says John.
"I bought my first place with a 5% deposit, and it was one of the best decisions I’ve made for my family’s financial future," he says.
Like many other Canberrans, members of John’s family have recently decided to purchase their first home as a project off the plan with a 5% deposit, but the discipline of saving meant that by the time their first home was built, they had saved 20% of the purchase price of their home.
"More importantly," says John "despite all the campaign rhetoric, it’s become clear in markets across the country that negative gearing has had no connection to the rise or fall of property prices. In Canberra, the supply of affordable housing and vacancy rates are at an all-time low, and the end of the election creates certainty," he says.
He pointed out that stability in the housing market gives potential investors two significant benefits, first, to make an investment in future financial security through property, and second to provide accommodation options for those Canberrans who are currently unable to find a suitable place to live.
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