ALP big majority
Just recovering from an exciting festival of sport in Brisbane this week, though fortunately I didn't have to stay up too late watching the Federal election results at least...it was all over bar the shouting by around 8.30pm on election night.
With Labor securing such a dominant majority, we'll be spared the influence of the more outlying Green's economic ideals, and as such the government has a clear mandate to implement its proposed polices.
Which will largely be centred around the theme of Big...Big Australia, big population growth, big spending, and a big infrastructure and housing build.
Overall, it was a conclusive vote of confidence for the incumbent ALP, and so it also looks like the Senate will no longer be a problem for pushing through the desired policies.
There are a few significant proposed reforms for investors and business-owners to be aware of.
In the housing market, the Labor party is also set to deliver a game-changing 5 per cent deposit scheme for first homebuyers.
Source: ALP
Some states will also offer stamp duty exemptions incentives for first homebuyers.
There's not much too more to say about that, except that given the likely trajectory of interest rates and the chronic and worsening housing shortage, this is going to pump the housing market from 1 January 2026 up to these newly upwardly revised price caps:
Source: ALP
The wrap
Overall, it was a massive election result for the government, who will now enjoy a friendlier environment for the next few years as interest rates come down and the worst of the cost of living pressures ease.
I've been very much enjoying seeing unleaded fuel prices in the 150s range per litre again in Queensland this week, and with the crude oil price plunging to its lowest level since 2021 over the past few days, there should be plenty more where this came from over the weeks ahead.
With retail sales volumes stalling in the March quarter, there's little to stop the Reserve Bank from beginning to ease interest rates a little further on May 20, with markets pricing for a 25 basis points cut to the cash rate target, to 3.85 per cent.
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AMP has introduced 10-year interest-only mortgages, with no mid-term reassessment:
Couple of things to say on this, given the predictable outrage.
Firstly, it's hardly that unusual, cf. in Europe...
And secondly, it's not going to increase your serviceability (in fact, the opposite is true, because the loan will be assessed over 20 years instead of 30).
Seems like it could have the potential to be a handy product, with flexibility.
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