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The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1360 DOES AMERICAN POLITICS SHAPE AUSSIE PROPERTY PRICES?
Can political shifts across oceans really alter our local property markets? Join us as we tackle this provocative question head-on. The recent election of Donald Trump as the 47th President of the United States stirs curiosity about its potential ripple effects on the Australian property landscape. We dissect this complex web of connections with our guest, Billy Bob, exploring if the political tides in America truly reach Aussie shores. While chatting with local families, we found that the topic of American politics rarely surfaces, yet we ponder whether these global events subtly shape our economic sentiment and property decisions.
Throughout our discussion, we unravel the invisible strings of sentiment that bind global events to local economic behaviors. From pandemics to political upheavals, we examine how these forces might sway our willingness to make significant life choices. The cultural power of Hollywood and its influence on our youth can't be overlooked, as it often dictates trends and economic confidence. Moreover, we speculate on the impact of U.S. interest rates as a vital benchmark for Australians, emphasizing how these rates might influence our own economic policies. Tune in for a dynamic conversation on the interconnectedness of our world and its unforeseen impact on the Australian property market.
yes, ladies and gentlemen, yes, ladies and gentlemen, does politics American politics affect our local property market? Stay tuned, we're gonna talk about it.
Speaker 2:I'm the ringleader, so let's get up. It's happened.
Speaker 1:It's happened. Trump is in.
Speaker 2:Yeah, 47th president. I think for a long time people were very unsure whether this was actually ever going to happen, but the day's here I don't know.
Speaker 1:Like you know the reality, guys and girls, I'd love to know your opinions. It's a live show. Whack your comments up, but you know, does it really affect, like the other side of the world, aussies? Is it really going to affect our economy, our property market, with this man coming in under the grips of this man? You know, mr Donald Trump, what do you think, billy Bob?
Speaker 2:Well, that's right. We're talking to everyday mums and dads aussies. Every weekend I had, I had the pleasure of meeting about 35 families on the weekend and not one mentioned it. I don't know if that's just because you know it's, it's, it's here and it's happened. I don't know whether that's because it's the first weekend back, but not one person mentioned it.
Speaker 1:And I just think, within politics, what we often forget is there's it's just the tip of the iceberg that person. That is the face. There's a whole system, there's a whole. You know. There's tens, and you know almost tens of thousands of people that are making decisions behind that person, probably hundreds of thousands. So you may be switching the jockey, but the horse is like the horse, yeah.
Speaker 2:Yeah. Yeah, that's a good way of putting it, but it's been like a massive thing in the press. Obviously and I think let's just jump into it because we spoke off air the biggest thing that this, this, impacts is people's sentiment, and there's no real way of measuring that yeah.
Speaker 1:So I think if, if, if you look at it on, if you look at any event, um, any scale of event across on, if you look at any event, um, any scale of event across the world, how it makes you feel will change your decisions that you make. Uh, we call it sentiment. So, be it a uh pandemic, be it a war, be it a tragedy, um, whatever those, whatever happens within those, those, those things I believe it does like. I think, when, when the chips are against you, you probably don't make life harder for yourself. Um, you know, you may just be a little bit more conservative. And then I think, when everything's going okay, when everything's going well, that's when you sort of forge forward and make decisions and make changes. So, putting that in property words, I think that you know, you saw that in COVID, for example, people just chilled out, the market just abstained, people were reluctant to buy and to sell and it just sort of it, just it paused too, um, so people were more reluctant to do stuff. And I believe that with what happens with, for example, in america like I don't need to hear this, but I often say this, but I believe one of the biggest political machines in the world is hollywood like.
Speaker 1:You know our kids. You know some of our kids will will. Uh, you know I see kids. You know, schooled in Singapore with an American accent. You know I see our kids. I've seen some of my kids bust out an American accent when they say something and we have a bit of a joke about it. But you know there's a lot of influence that these cats have.
Speaker 2:Absolutely.
Speaker 2:In the US Well these guys are the, the biggest in gdp, um, you know. So there's going to be some kind of economic um confidence and then investment will flow out from the country. People are going to be looking at the us, I think, particularly as a benchmark for interest rates this year. Um, I think that's going to be the biggest, biggest, um well, the thing that people play closest attention to, um, you know, as the everyday aussie, people are going to be watching what does the us do with their rates? What will, you know, their office do to? You know, stimulate their economy. And I think you can expect that to trickle through, maybe down the line. But it, you know we do. We do follow overseas markets it's interesting.
Speaker 1:I I sort of I look, I looked at stuff, um, with doing research, I think you know trade, our economic trade, uh, and investment that we have the the US is big, global financial markets are influenced by it um, something where you know which we we don't often think about, but you know our uh geopolitical alliances and defense, um, I think that our alliances with you know the US, for example in defense, is is important to how we feel.
Speaker 1:You, you know whether we feel vulnerable or strong, and again that will convert over to everyday mums and dads making decisions and then global trade dynamics like supply chain vulnerability. So I think often we've seen it in the last couple of years where you know the US will make a decision on electric cars, or the US will make a decision from China, or they'll make a decision on something, and then we will adopt that decision, thinking you know that's the right thing to do. You know let's follow them into this one. Sometimes we don't, but those things are all kicking back to everyday brats and dad in DY in the northern beaches of Sydney.
Speaker 2:Absolutely. I mean, I guess the more harmonious, the more you know, the smoother everything is. What will you know? Just trickle through, look at the cost of building. That hasn't been easy for a long, long time and it probably is, because there's just been changes, constant change. So I think that's what you you got to keep an eye on. Next. Next six, six months is going to be really interesting. The, the big four australian banks were already saying when we finished 2024 that there would be a rate cut around may. Um, you know that that's coming towards the middle of the year, july somewhere around there, that that could be the next the, the year July, somewhere around there. That could be the next big thing for Australia property prices. What do you think of Trump? I'm not really into politics, I don't care, I don't have an opinion, but I like peace, I think that's healthy and you know if you can put out wars Everyone cares.
Speaker 2:Everyone's got an opinion. I'm happy around that. I wore my American tie today I won't say with a I said I wore my American tie today in celebration.
Speaker 1:I won't say that I'm a supporter or not a supporter, but I will say I'm entertained. I just think when I see some of the stuff come up I'm entertained. Actually, being a little bit political one thing that I do like I like when someone's running a country that's got commercial experience. Often, I think, politicians get into positions of power through politics and they've been in politics for, you know, 30, 40, 50 years and they're there because they've you know they've worked the political system.
Speaker 1:I'm a bit of a fan when I see someone worldwide, you know, in any country that's a business person making business decisions for a country. That encourages me, for instance, the Worldwide Bank. The people that sit on the board of the Worldwide Bank the majority of them are some of the most powerful business people in the world. Now, to run a bank, I think that's clever. Do you know what I mean? To be a business person making banking decisions and to run a country, I don't know it's better than someone who's just worked the political system. Anyway, not saying I'm in hard or out hard with Mr Trump, but I do believe if he pulls it off and makes people over the years feel comfortable, I think the kick-on effect to our local economy will be making people comfortable, whereas if he really botches and stuffs it makes it uncomfortable for people, then I think that will kick on as well. End of the day, I do think there's influence there, as much as an individual may think go screw them, not interested whatever. I think the majority of people have an opinion.
Speaker 2:Look at the news. I think that's a good summary. That's a brilliant 10-minute segment.
Speaker 1:That's a segment there. What's?
Speaker 2:Lisa got to say Trump will sort stuff out. We need someone powerful to rule. You're going to get that. There's no doubt about that.
Speaker 1:You're going to get that. You're going to get that, so there you go, guys and girls, I'd love to know your opinion. Leave them on the show later, if you have one, and good luck to America, to Mr Trump, it's a big day. I think three or four years, it's a big day. It's a big day. It's a big day for change.
Speaker 2:And I think positive, let's be positive. Nothing about property yet, but a little bit about TikTok, a little bit about genders as well. So just wait.
Speaker 1:Yeah, but I'm pretty positive translating all of this to little old us and little old DY on the northern beaches of Sydney. I do think it's a positive property market ahead for us. I do think it's a positive property market ahead for us. We haven't seen double-digit growth, which normally we see. Property values double every 10 years. We have the last 100 years on the northern beaches Every 10 years generally you take a batting average it's doubled and we're actually behind. We're 60% with units. I was looking at it last night. So I do think this there's a bit of a. There's a bit of potential there for capital growth, particularly with affordable stuff like apartments yep, yeah, that's a hot price point at the moment.
Speaker 2:Have a great day, go America have a great day, ron.
Speaker 1:Good luck, america, see ya.