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Some buyers are holding off purchasing property until after the Federal Election is finalised. Picture: istock.
ALMOST half of potential property buyers revealed they have put their plans on hold while awaiting the outcome of the Federal Election.
But surprisingly with negative gearing being raised as an election issue, 54 per cent of respondents to a national survey revealed it hadn’t influenced their decision.
The survey, by iBuyNew, which promotes off the plan property sales, found 46 per cent of respondents would wait until after the July 2 election to weigh up the policies which may impact the property market.
BIZARRE NEW RULE FOR HOME BUYERS
Labor has already announced it would change negative gearing rules if it took power after the July 2 election.
Mark Mendel of iBuyNew said if Labor came into power it would restrict negative gearing to new dwellings only from July 1, 2017, as well as halve the Capital Gains Tax discount for assets held longer than 12 months from 50 per cent to 25 per cent.
He warned those who did decide to hold off could risk higher property prices after the election.
“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,’’ he said.
He said if Labor were elected then there would be more demand for existing properties from investors wanting to get in before the 2017 deadline.
He said more demand could lead to higher prices.
After that he predicted demand would shift to new off the plan properties which could still be negatively geared.
“It almost creates a false marketplace,’’ he said.