The Governments affect on property prices
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.
Today were going to discuss how the government in power affects property prices.
We all love federal elections, with heaps of advertising on TV, radio and billboards. Not!
You know those news segments with the politician shaking some persons hand he has never met in hope they will like him enough to vote for him after meeting for 1 minute.
And how about those ads with the ending “this is a message from a party you most likely won’t vote for, authorised by some dude trying to get more power in Canberra, Australia.”
Since 1975 the Coalition or the libs have won 9 elections and labour 7 elections.
I’m not a particularly political person, but wondered which government may be correlated to a greater affect on property prices, which is more interesting to me.
I analysed the terms both governments served since 1975 until 2018.
In my calculations the coalition has been in power for 24 years and labour 19 years during this timeframe.
Here’s the coolest stuff I found from analysing these periods:
If you own property, then it would be wise to vote for the coalition government even if you really don’t like them.
Simply, prices rise more with a coalition government than a labour government in Sydney, Melbourne and Brisbane during there terms since 1975.
Based on my calculations, this works out at 2.9% more per year for Sydney, 1.8% more per year for Melbourne and 2.1% more per year in Brisbane.
Based on my calculations at current prices, a Sydney sider will make about $31,000 more per year with the coalition in power, $15,000 per year for Melburnian’s and $12,000 per year for Brisbanites.
Prices rose the least during the Labour GFC period from the mid 2000’s, on average 4.5% per year for the 3 capital cities.
Prices rose the most during the Coalition period during the 70’s and 80’s at about 10.45% per year on average for the 3 capital cities.
I don’t see the coalition getting back into government anytime soon though.
Maybe the only reason to get them back could be for our property prices?”