You’d have to be living under a rock not to know the federal election is being held this Saturday, and a question I have been asked by the media a number of times over the last few days is “how is the election outcome going to affect property investors and property investing?”
Interestingly property affordability and housing has not been mentioned in the election campaign and neither party has announced a policy on the housing market.
And when you think about it, it is unlikely that any new government (of whatever persuasion) will have any immediate impact on our economy.
However like every other election I remember, many homeowners and investors have been putting off their buying decisions. It’s the old story – when people are uncertain they hold off making any major buying decisions.
Although some real estate agents are suggesting the property markets will have their usual Spring Boom as buyers return to the market, I believe that things will be a bit quieter than some of these agents would hope.
There is more housing stock for sale on the market than this time last year, yet finance approvals are lower, suggesting there are fewer buyers around. Add to this some lingering doubts in people’s minds abut the world economy and this leads me to conclude that we are in a buyers’ market.
I don’t see the property markets crashing, but I do see property prices falling in some areas. Buyers markets are a great time for investors – but you have to purchase very selectively.