Possible Trump impact on Oz real estate

vr4indian on 02/01/2017 - 11:33
Last edited 02/01/2017 - 14:33 by 1 other user

Hi all

I would like to know fellow ozb community members opinion on possible impact on Sydney real estate due to

1. Trumps taking oath in few weeks time (his view in hacking and using courier services instead really amaze me on his future commentary on obtaining economics)

2. Banks increased investment purpose interest rate (they generally sees 2 to 3 years in advance for their projection)

3. Possible RBA meeting is still month far

If property is selected, should first home buyer make the deal now or wait for month or so?

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  whooah1979 on 02/01/2017 - 11:59

  If property is selected, should first home buyer make the deal now or wait for month or so?

  your post is difficult to understand. do you want to buy a ppor? if yes, then buy any time. if you're buying an ip, then don't worry about the fhog.

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    vr4indian on 02/01/2017 - 17:52

    Thanks mate

    It will be FHB

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  holdenmg on 02/01/2017 - 12:27

  Trump isn't being sworn in here in Australia, although you could
  believe he was by the media fascination and coverage.

  In respect of your first point, 1.
  Are you trying to leverage (or gain from) your thinking that there will be an upswing in the demand for Courier Services or the Commercial Property from which they operate (that could be owned outright or leased via a Property Trust).

  Or are you thinking that Banks that are depending on electronic clearances, will need to switch to or adopt manual courier dependent clearances or swaps and this will slow or frustrate Banking and Transactions?

  In respect of your second point, 2.
  Banks have always done this, they would have a mix of strategies for various possible eventualities.

  In respect of your third point, 3.
  It depends how much weight you want to put on what causes the RBA to move the levers. As you have probably seen RBA rate cuts are not passed on in full by the Lenders, while rate increases are (and then some).
  I'd be more inclined to weigh what the lending environment may be in respect of
  First Home lending into a fairly overpriced market going forward, may tighten availability or qualifying criteria etc.

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    vr4indian on 02/01/2017 - 17:51

    Thanks mate for valuable inputs. Courier was just an example to show
    Thought process of a word leader

    Point 2 was more to gauge will First home buyer will be next in queue?

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  DoubleR on 02/01/2017 - 12:54

  1) Trump's unlikely to have much effect on the Sydney residential market. Unless there is some unknown major immigration event. He's heavy infrastructure policies are likley to adversely impact Australian commercial property values however.

  2) Most economists and market participants generally think that the low growth period will subside and interest rates will pick up over the next few years. It makes sense that longer term that these rates will be higher. Also banks may see more risk associated with investment loans generally in Australia.

  3) In line with point 2 above, the market generally expects rates to remain constant or increase this year.

  Like whooah1979 said, if you're looking to owner occupy just find something you like and buy - don't try to play the market.

  If you're looking for an investment property look towards more fundamental property drivers rather than macro ones (i.e. supply and demand of property type, etc.).

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    Diji1 on 02/01/2017 - 15:07

    He's heavy infrastructure policies are likley to adversely impact Australian commercial property values however.

    Through what mechanism?

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  payless69 on 02/01/2017 - 14:49

  The impact is mainly made by a "Chick" named J. Yellen

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  Scab on 02/01/2017 - 14:51

  +1

  Trump will make real estate affordable again.

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  Diji1 on 02/01/2017 - 15:07

  -1

  Grab 'em by the (profanity)!

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  Peck on 02/01/2017 - 16:22

  If Aust. loses its AAA credit rating, the cost of borrowing money will go up.
  Also there is a glut of apartments in the pipeline.
  2 reasons why Sydney property prices might not continue upwards.

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    vr4indian on 02/01/2017 - 16:58

    True

    I personally see skyline is changing drastically

    Concrete buildings are everywhere specially with new buildings with such a low carpet area.