What the federal election could spell for the property market

What to expect from policies

In the past, prior to elections, parties have suggested changes to negative gearing and capital gains taxes which could mean potentially significant impacts to those invested in property. Because of this, a dip in investing was seen in the build up in those campaigns. 

However, at this stage, there have been no significant policies brought to the table by either party that are likely to negatively impact those buying properties pre- or post-election in 2022. In fact, both parties have committed to support first homeowners in entering the market with different policies: the Coalition’s Super Home Buying Scheme or Opposition’s Help to Buy Scheme. As such, you would think that the election itself would have very little impact on decision making for property investors.

Time to hit pause

Regardless of whether or not political parties announce any new policies that may impact the housing market, it’s natural for property investors to take a more cautious approach when it comes to buying property at election time. The president of the Real Estate Institute of Australia Hayden Groves states that before an election “people tend to put their cue in the rack so to speak and not progress their property pursuits”. It’s an uncertain time in many industries so many choose to wait it out and make significant decisions after the election has passed and the new government is settled into office. For others though, buying pre-election may represent an opportunity to secure the right property with less buyer competition in the market.

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