We know this doesn’t sound like it has a lot to do with home loans in Rockingham but it may be more relevant than you think. The people of the UK forced a referendum vote over whether or not to withdraw from the European Union. The vote was dubbed “Brexit” by the media. While many people dismissed the chances of Brexit happening at first, the voters had their say and Brexit won.
The UK has officially voted to withdraw from the European Union. While the formal withdrawal hasn’t happened yet and could take up to two years, Brexit affected share markets around the world from the opening bell the day after the voting results were announced.
The vote from the people of the UK has destabilised both the UK and the EU. There is a lot of uncertainty all over Europe as the rest of Europe waits for the UK to decide whether the people’s vote is enough or whether it will take a full vote in Parliament to make Brexit official.
What Does it Mean to Australia?
While it is commonplace to complain about the economy, Australia is seen as a great investment in other countries. We are seen as providing stability, economic growth and what is known as low sovereign risk. With the unrest and uncertainty in Europe not seemingly going away anytime soon, Australia is beginning to look even better to investors from other countries.
Australian commercial property is already attractive to global investors. We usually get a lot of competition from European locations. But thanks to Brexit, investors are leery of investing in Europe right now. That is making us even more desirable.
Our residential market is also expected to rise due to Asian investors who are going to stay closer to home instead of investing in Europe. This will cause a rise in housing prices.
Call a Mortgage Broker at Smartline Rockingham
Whether Brexit happens or not, it has brought investment in European properties to a near-standstill. If you are thinking about buying your first home or moving up to a larger home, now is the time to start taking serious action.
To learn more about home loans, call us today: (08) 9527 1800.