The majority of Australians have not been deterred from the property market amid the lead up to the federal election, a new survey has revealed.
The poll conducted by online property agency iBuyNew found that 54% of respondents said the election was not influencing their decision on whether to purchase a property.
However, almost half (46%) to the online survey said they would wait until after the July 2 election so they can wait to weigh up the policies which will impact the real estate sector.
Not surprisingly, iBuyNew CEO Mark Mendel said the biggest concern was Labor’s proposed changes to negative gearing and the capital gains tax discount, which would restrict negative gearing to new dwellings only from 1 July 2017 as well as halve the CGT discount for assets held longer than 12 months, from 50% to 25%.
“They say that this tax reform package will improve the budget bottom line by $32.1 billion over 10 years,” Mendel said.
“In response to this, the Coalition would not change negative gearing as it believes that Labor’s plan would undermine consumer confidence and smash home values.”
The debate around the negative gearing propsals has been a key part of the campaign so far and was reignited this week by some of the biggest names in the real estate industry
While that may cause some investors to stay out of the market pending the election outcome, Mendel said those that do could soon be kicking themselves.
“At iBuyNew, we concentrate on selling new off the plan properties, and these proposed changes by Labor will not affect our properties,” he said.
“By waiting to see which party comes into power, you miss out on some excellent property opportunities available right now while prices could also rise after the election.”
Mendel is fair from the only one who have warned investors may miss out if they sit on their hands during the election campaign.
“It is a great time to buy for those have a well thought out strategy, exit plan and buffer in place and no for those who don’t have these in place. Our clients are out there getting good deals because they have well thought out strategies, exit plans and buffers in place,” Helen Collier-Kogtevs, managing director of Real Wealth Australia, told Your Investment Property earlier in the campaign
“You will always get people who will procrastinate and use market forces as reasons for not proceeding and that’s ok, but for those with well thought out strategies, exit plans and buffers in place, opportunity abounds,” she said.
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