The timing of the upcoming Federal Election has been welcomed by the head of major real estate franchise, who believes it will have little impact on what is traditionally the strongest period of market activity each year.
Angus Raine, executive chairman of Raine & Horne, said the timing of this year’s election in early July is “perfect” for the property market and should ensure market activity is a strong as ever in spring 2016.
“Generally, whether we're buying or selling, we tend to wait until the election is decided just in case there are any unforeseen surprises. Now that the election has been called for July 2, this represents the perfect timing from our point of view, as winter is typically a quieter time for property sales,” Raine said.
“A July poll will enable vendors to list their properties in July and August, and it won't affect their buying plans through the traditional spring selling season. This decision, while it mightn't help real estate activity during the two month election campaign, it will put vendors in an excellent position to meet their property goals by the time the traditional selling season begins in early September,” he said.
While Raine said people usually pull back from the market in the lead up to an election, others in the real estate industry have said there is no reason to delay any decisions if you are properly prepared.
“In the past we’ve seen people hit the pause button in this period, but for me there’s nothing that really makes investing right now an unjustifiable decision if you’re prepared,” Paul Wilson, founder of buyers' agency We Find Houses, told Australian Broker’s sister publication, Your Investment Property.
“If you have a strong strategy and you look at the policies being proposed by the parties and you think that it’s the right decision, then I can’t think of why you shouldn’t take action,” Wilson said.
Raine also became the latest to caution policy makers about making changes to current negative gearing or capital gains tax arrangements and believes they should be focussing on other ways to address housing affordability.
“Making changes to negative gearing or capital gains would be a brave decision, especially as Australians don't have a particularly strong record when it comes to savings and investing.
“With some checks and balances, providing some limited stamp duty tax breaks, for example, for those upgraders buying into new properties might be worth considering.
“Good government is about creating some new policy ideas rather than just raking over old coals.”
