How to Tell if a Property’s Value is Going Up or Down
With global politics heating up again, investors are watching closely. Trump’s return to the spotlight and his ongoing tariff war with China are already sending shockwaves through the global economy. But what does it mean for the property market here in Australia?
Let’s break it down.
What Is a Tariff War?
A tariff war is when countries place extra taxes on imported goods. The United States raises tariffs, China responds, and suddenly, everything becomes more expensive. Trade slows. Confidence drops.
This back-and-forth doesn’t just hurt the two countries involved. It spills into markets around the world — including ours.
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Why It Affects Australia
Australia exports a lot of raw materials, especially to China. In fact, we sent over 100 billion USD worth of goods there in 2024 alone. If China starts needing less, that means trouble for our economy.
Here’s what could happen:
- Mass layoffs in the mining and resources sectors
- Slower economic growth
- Uncertainty for investors
And as we’ve seen before, investors don’t like uncertainty. They often pull money from shares and wait to see what happens. This creates ripple effects across housing, business, and even personal spending.
Central Banks Are Already Responding
The Reserve Bank of Australia is expected to cut rates, possibly as soon as May 2025. Some experts think they’ll slash by half a percent. That’s a big move.
Lower interest rates usually mean:
- Cheaper mortgages
- More borrowing power
- Higher demand for homes in key areas
However, not all suburbs will benefit equally. Places with strong demand and limited supply may see price growth. Others could stall or decline.
Final Thoughts
This isn’t about fear — it’s about being informed. Global politics and economics will always influence local markets. But if you stay focused, do your research, and look for strong fundamentals, you’ll be ahead of the curve.