Well, if you thought the brisk headwinds cooling the property market couldn’t get any fresher, this week the Labor Government delivered another blow by abolishing lending in SMSFs for residential property. Albo and Chalmers have moved against the property market so viciously recently that I’m almost contemplating listening to Karl Stefanovic’s podcast, that’s how bad this is becoming!
No, what am I saying? Things could never get that bad…
The market had already caught a cold before this budget dropped…and yet despite agents claiming now is the time to buy my sense is that this lurgy may get a little chestier (forgive the seasonal metaphor but I’m almost certain my three year old’s daycare is trying to kill me).
It’s not all bad news. There is a winner in this environment and that is the upsizer. The reality of this market place is you probably won’t get the price you want when you sell but if you are upsizing you may be surprised to discover what you can now afford.
In the iconic diner scene in the cinematic masterpiece ‘Heat’ Neil McCauley played by Robert De Niro and Vincent Hanna played by Al Pacino face off, this riveting scene is often referred to as the ‘flipside’.
Obscure segue perhaps, but my point here is that there is indeed a flipside and you need to factor that into the value of your own home if you want to make a move. Side note, no matter how random I get in this newsletter I’m still being accused of using AI to write it…what must I do? Surely no intelligent computer would write this stuff?
For me the ominous cloud is the US, in my mind if their stock market implodes things could get very interesting for everyone everywhere. In an interview this week Alan Kohler made reference to the Minsky moment which is a concept named after an American economist who developed the financial instability hypothesis. His argument was that long periods of prosperity made investors overconfident leading them to take dangerous risks. Was the Space X IPO a signal that the US stock market is losing its mind? Only time will tell.
Well done to the team for securing several good results this week and this quarter, I guess the old adage is true…when the going gets tough the tough get going.
Until next week,
David Murphy