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How will the Brexit, US presidential voting & AUS election affect local property market?

Discussion in 'General Property Chat' started by Wing, 24th Jun, 2016.

  1. Wing

    Wing Member

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    1. The news for Brexit :EU Referendum Results - BBC News As for Brexit, I know that for the short term affect it will affect the stock market which you can see that heaps of global market index gone down.
    2. Another affecting factor here will be the US presidential voting? Somehow I feel if Trump win then the market will be much more volatile compare to Clinton.
    3. Not much idea on Shorten or Turnbull...
    Brexit -> Leave & Trump win seems giving the market more uncertainty which push the market down and somehow interest rate may go down again.

    So how do you guys think? :cool:
     
  2. hpresident

    hpresident Well-Known Member

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    Brexit may potentially have a huge effect on global equity, the market is over reacting right now but if the exit is not managed properly it would potentially cause overseas investors to pull out leading to a flat market. I don't think the chinese/asians investors would pull out so overall effect may just be lower GDP growth leading to flat market.
    Trump I don't think will have too much effect on our market at least for now.
    The whole election thing is another thing, if say negative gearing is removed we could see a short term dip/flat market.

    Overall sudden change to the rules are generally not good for market sediment.
     
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  3. Wing

    Wing Member

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    Yeah I believe so about the overseas market, as I've been working in the mortgage business for last 5-6 years. Thanks for the migration policy, most of the overseas buyer are actually from South East Asia, China or Indonesia. However as you know recently all bank stop those foreign buyer (I know it will come back but pretty much tighter rules).

    For Brexit, it seems that even it pass, it still need to take a while to handle everything which may take at least a year or two.

    For the negative gearing stuff, it will affect the investor as well but gods know if they really stick to what they promise...
     
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  4. wombat777

    wombat777 Well-Known Member Premium Member

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  5. mcarthur

    mcarthur Well-Known Member

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    What about on banks ability to source funds, given most of that is from overseas?
     
  6. Ardi

    Ardi Well-Known Member

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    Does anyone think that the brexit and the uncertainties and falls that this has created in many economies will benefit the LNP? I feel many might opt for the economic plan and not want a change in our own government in unstable times.

    Just a thought.
     
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  7. Blueskies

    Blueskies Well-Known Member

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    One positive seems likely, it will keep Interest rates low for the near future. Global sentiment is shaken once again and commodity and oil prices have fallen again which is deflationary.

    Good buying opportunities on the ASX today if you are game to catch a falling knife, financial stocks are yielding close to 7% fully franked, trading at 12month lows. Million dollar question is will it get worse before it gets better?
     
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  8. JDP1

    JDP1 Well-Known Member

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    Yes...risky assets will be dumped in the short term. No crash of anything though...good time to be looking to load up on growth assets..if you have the serviceability and money. You willbe laughing when growth comes into fsvour. Just dont know when...
    Yes, puts further pressure to cut rates in short term. Safe havens like gold and property should do well...especially Australian property...but not a big boost. Just a minor improvement of desirability of Australian property worldwide. A good time to look at aust growth property, especially as rates here might also be cut.
     
  9. big max

    big max Well-Known Member

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    Good point. Yes agree although it could actually work both ways in that idiots here also become emboldened to vote for destructive policies in Oz as well. Let's see.