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.”
But by opting to stay out of the market pending the election outcome, Mendel said consumers could find prices rise after the federal poll.
“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.”