In the lead up to State or Federal elections, business and large corporations tend to be hesitant about making any huge changes to their processes.
Similarly, elections can affect the property market on a number of different levels. Depending on the policies being thrown around or the promises being made, buyers and sellers tend to hold back until the election is over.
At Ann Paterson Real Estate, we always have our finger on the pulse when it comes to election time. We want to make sure we can provide our buyers and sellers with all the advice and information they need going into and coming out of an election.
Buyers may consider holding back because of potential changes to things like stamp duty or first home buyers’ grants. The suggestions of property, investment and retiree taxes set to be implemented by one side of the government may ignite some fear in the minds of buyers. With buyers feeling wary, demand for property dies down, leaving a stagnant market with little movement.
Investors, who also fall into the buyer’s category, are often wary when negative gearing and capital gains tax are brought up on the campaign trail. The outcome of a negative gearing change could see them selling properties or could have them buying more. At any rate, they’re unlikely to make a move too close to an election for fear of the fall out.
With the results of the recent Royal Commission into Banking, the big banks have come under scrutiny from both sides of government. This means that the topic of lending often arises and as we’ve already seen, the amount of money that can be lent to investors and buyers is often under the microscope. Depending on the outcome of the Federal election, the royal commission’s recommendations for the big banks may all be implemented, meaning the property market may feel a pinch.
For sellers, an impending election doesn’t tend to worry them too much, but with wary buyers in the market, they might choose told hold back and sell post-election. Auctions are likely to be pushed back until after election day and there may be a drop in sales in the weeks leading up.
If you’re looking to sell and you’re not sure if you should hold off until after the election, get in touch with Ann Paterson Real Estate and we’d be happy to have a chat and talk to you about your options.