With election silly season well and truly over, the ramifications of the changing political parties is creating a stir among Australians – particularly about what the future of the country holds in terms of the economy. With concerns for the economy comes the inevitable question of the property market – will the property market be affected by the election?

The Good News

In general, the Australian economy is in good shape, with low unemployment, low interest rates and low inflation. Additionally, our population is growing, and the rest of the world economy is continuing to recover from the crises of the past five years or so.

All of this means that, whether it’s the Labor or the Liberal Party that stays in power for the long run, the Australian property market should, ideally, continue to experience stable growth.

The Bad News

If there is a potential spanner in the works, it’s not so much this party or that one winning on Election Day, but the election of an unstable government that cannot hold the floor in the House of Representatives for a full three years.

With recent turmoils in the Labor Party, the general unpopularity of both major party leaders, the slew of new minor parties on the ballot, and revolts on all sides over issues such as coal seam gas mining, marriage equality and asylum-seeker policy, an unstable government, possibly resulting from another hung parliament, remains a real possibility.

That’s an outside chance, but it’s certainly not unthinkable in the current political climate. Provided this possibility can be avoided, the Australian property market should continue to grow for the foreseeable future.

Researchers from SQM Research predict a softening in rental prices over a range of different localities across Australia could indicate that there are a large number of first time home buyers making purchases.

Data indicating the prevalence of first time buyers in certain areas can be useful to property investors who are looking for areas that are most likely to offer a good return for their money.

When rental prices drastically rise or drop in a certain location, it can sometimes be directly related to the number of people in the area who are choosing to purchase their first home. When the economic climate is favourable and interest rates are also low, first time buyers are more likely to start looking for a home.

Andrew Wilson, senior economist with Australian Property Monitors suggests that current upswings in first time buyers in some areas could also be linked to various state schemes that have been deployed in the hope of enticing buyers into the market. He says that softening rent prices could be linked to a direct hangover from these attempts to encourage new buyers.

Being able to analyse the property data and figures available is an essential skill when it comes to making money from an investment property portfolio.

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For help when it comes to studying market trends and seeking out suitable investment properties, consult the experts at Rass Global Investments. today. They could help you start making your money work for the future.

The latest cut to interest rates sees Australia’s cash rate at the lowest it has ever been since official records began in 1959. At just 2.75 per cent, the record-breaking rates are sure to be celebrated by property investors who are looking for finance deals that will offer them a substantial return on their money in years to come.

The cash rate is now 175 basis points lower than it was when the Reserve Bank of Australia (RBA) began its current course of cuts in November 2011, reports Australian Property Investor.

The cuts come as the RBA made the decision to shave another 25 basis points off interest rates. While the move was several months in the making, many industry insiders and experts have been predicting the cut, especially in light of March’s lower than expected house price growth rates.

RBA Governor Glenn Stevens said that the effects of the cuts are starting to be seen throughout the economy and that the board has already established the potential for the rates to be further lowered, should it be necessary to lower demand. A reduction of a further 25-50 basis points is expected by a number of analysts and commentators.

Property Investment in Sydney

For help in not only choosing investment properties, but also in finding suitable finance solutions, be sure to get in touch with the Sydney based experts at Rass Global Investments. Rass Global Investments can help you every step of the way when you decide to become a property investor, from choosing the right investment property to knowing when to sell later on.