What’s on the horizon with the Federal Election?
Experts weigh in on the Federal Election
The Federal Election is just around the corner and as can be expected there has been much debate on both sides as to possible outcomes, and what it could mean for the property market.
Although there is no crystal ball to know anything for certain, experts and economists have been sharing their insights. This is what we know and what the numbers say. The Labor Party’s policies are centred around getting more people into the housing market by targeting investors. Its proposed changes to negative gearing and Capital Gains Tax could mean that property prices will start to trend lower, which would allow more people to get on the property ladder. SQM Research estimates anywhere between 5 – 12 per cent, however this is dependent on no changes from the Reserve Bank.
Should the coalition remain, the current investor incentives will stay the same. Although it’s hard to say how that would cause changes, experts are suggesting that the Party is relying on the Royal Banking Commission to rebalance the housing market.s
What about post-election? Traditionally the market returns to normal very quickly after slowing in the run-up to an election. Backing this up is research by the Australian Bureau of Statistics, which found that property prices rose 5.2 per cent in the quarter following the last Federal Election.