Just a few days ago it was announced that none other than Mr. Donald Trump, an award winning businessman with billions of dollars to his name, has been voted the 45th president of the United States. At The Mortgage Calculator we prefer to keep an open mind about things – especially when they may end up affecting the local Australian markets, so we look forward to seeing how this new president takes on his role as the Commander in Chief.
Now, you might be wondering how a man on the other side of the world could possibly affect a remote region like Australia.
The fact is that one of the main promises that Trump made was that he’d pay special attention to American businesses that were operating internationally, so as to avoid the double taxation that they are currently being subjected to. This treaty led to many US companies fleeing for safer places like Australia, Africa and Europe – where tax deals are far fairer.
With Trump promising to try his best to bring US businesses back home – how will this affect the Australian property market, if it will at all?
Global factors that impact property values
Australia is pretty independent when it comes to the day to day running of its markets. We have one of the most stable economies in the world (if not the most) and this is why so many people are considering setting up shop here. Even if Donald Trump is able to offer appealing terms to US businesses, the fact is that the Australian economy is still a market worth investing in and the likelihood of anything but progress being made is slim to none.
From a buyer’s point of view this means that not only will the majority of businesses remain operational within our country (helping to add to our growing economy), but the ones that do return to the US will still maintain ties with Australia – particularly in areas like Melbourne and Sydney (which are considered to be at the heart of many business sectors).
If anything the open approach that Trump takes to fresh trade agreements will mean that our countries’ property market could stand to benefit even more greatly than ever before. As the US dollar improves in value the AUD will follow suit, making properties more affordable in the long term – as well as helping to ensure that interest rates remain as low as possible well into the future.
Our verdict? The next few years could be very promising indeed for those hoping to purchase homes here. It’s pretty safe to assume that rates will stay as low as they are currently, or fall even lower in the next four years – making now the ideal time to start planning to buy a new house.