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Brokers say they are positive about the change of government following the weekend’s federal election.
Justin Doobov, Australian Broking Awards' Finance Broker of the Year and managing director at Intelligent Finance, told The Adviser he expected the housing sector to strengthen under an Abbott government.
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“People were always hesitant of investing or doing certain things with Labor in control because they thought that Labor was always increasing their taxes and stifling their business, whereas I think with a Liberal government it will change,” he said.
Mr Doobov said the psychological effects of the change in government were just as significant.
“Even if nothing much changes, the mindset of business people and investors will change,” he said.
Mr Doobov said the recent pick-up in the industry was a sign many expected the change of government.
“For the last four or five months, people have been investing as if they had a Liberal government anyway,” he said.
Mr Doobov said he believed the thought of a Liberal government instilled more confidence in investors.
“I think people were still buying pre-election because they knew there was going to be a change, so they knew that if they bought a property there’s not going to be some special tax brought in because Labor decided they wanted to get more money,” he said.
While Mr Doobov acknowledged some regulations put in place under the Labor government were important in getting 'rid of the cowboys from the industry', he said he was hopeful the incoming government would relax some industry controls.
“Some of the unnecessary controls Labor put into our industry will hopefully be relaxed and that will make getting credit a lot easier for certain borrowers who for the last year have been denied credit.”
Renee Ashelford from Loan Market said the result was a relief for first home buyers. “They feel like they can concentrate on getting into the market and looking at their first purchase. It’s a positive aspect, definitely, for the first home buyers,” she said.
Ms Ashelford added that she believed the next 12 months would be very positive for the housing industry, with substantial growth likely during the remainder of the year.
