Federal election an investment opportunity

The pending Federal election could present opportunities for astute home buyers and investors, according to Real Estate Buyers Agents Association of Australia (REBAA) president Rich Harvey.

He believes it is likely there could be a lot less competition at auctions and open inspections in coming months as historically people tended to sit on their hands in the lead-up to elections.

"The lowest point consumer confidence had been in the last couple of years was the 2014 budget when the Roy Morgan index plunged below 100 (average is 113)," he said.

“Looking at the most recent consumer confidence report from Roy Morgan, you can see the stark changes that happen among Australians around both budgets and elections,” he said.

“While the metric did rebound to regular levels after some time, it shows the resounding impact that budgets have on our consumer base. With tax breaks, higher fees, and restrictions on spending, it's no wonder people feel less confident as new measures are announced.

"In the event cold feet turned out to be a widespread phenomenon in coming months, buyers would be wise to get in “while the going was slow” and take advantage of consumer uncertainty.

“The Reserve Bank figures show that housing credit has remained stable over the first few months of the year, after some rocket-powered increases in lending throughout 2015. This suggests that market activity has already slowed down, and pre-budget or pre-election nerves might see this escalate.

“With promises coming from all corners of the political arena and less stability until the votes are counted, a quieting could be on the cards. While none of us have a crystal ball, it make sense that if there are fewer people in the property market, property hunters will have a better than average chance of picking up an excellent deal."