Experts predict that Australia's real estate market is likely to bounce after the unexpected re-election of Scott Morrison
- The coalition government is expected to make three interest rate cuts throughout the year
- It is also expected that the regulation of loans that people need to lend will be relaxed
- Due to the lower assessment percentages, home loans can become more accessible to buyers
The unexpected re-election of Scott Morrison as prime minister is likely to boost Australia's real estate market, experts have claimed.
The coalition government is expected to achieve up to three interest rate cuts and to ease loan regulation, making the market attractive to home buyers, as property prices in Sydney and Melbourne have fallen to the 2016 level.
It has proposed to lower the minimum interest rate that individuals must meet to make loans more accessible.
Belle Property sales manager Marina Makhlin told Nine news that both buyers and sellers were worried about what a victory of the Workers would mean for the economy.
& # 39; People really didn't know how it was going to affect them and I think fear really stops people from making decisions, buying or selling decisions, & # 39; she said.
The coalition government is expected to implement up to three interest rate cuts and relax the lending rules (pictured: Prime Minister Scott Morrison and his family)
The coalition government offers a loan where first-time buyers can buy a property with a down payment of five percent instead of the usual 20 percent.
This weekend has proven to be a good indication of where the market is going, as 2,000 homes have been auctioned in Sydney – 50 percent more than last weekend.
Property prices have fallen by 7.2 percent in the last 12 months, CoreLogic data revealed.
The median prices in Sydney last month were around $ 780,000, while the houses in Melbourne averaged $ 622,000.
Belle real estate sales executive Marina Makhlin (photo) said that people are reluctant to buy and sell
Economist Jason Murphy said that the jump in the number of auctioned houses was the result of the coalition's victory.
& # 39; There are negative changes in gearing and the capital gains tax change does not happen & he said news.com.au.
& # 39; This is likely to have a positive effect on prices, but how big will it be? & # 39;
The Australian prudential regulatory authority has proposed lowering the minimum interest buffer, which is used to determine whether a buyer can make repayments at a higher rate.
Senior economist Bill Evans told The Guardian he suspects that the Reserve Bank of Australian will announce a 0.25 percent discount at its next meeting on 4 June.
The three interest rate cuts, which could be made this year in June, August and November, would increase employment and the economy.
Lower assessment rates can make home loans more accessible to potential buyers (file image)
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