Home Buyers Held Back by Election
The upcoming federal election and the uncertainty about where the economy will head afterwards is stalling consumer confidence in purchasing property, according to a survey by leading mortgage broker Loan Market.
The online poll which asked home loan shoppers “has the upcoming federal election impacted your intentions to buy property?” found that 43 per cent of 674 respondents said that they were slightly more apprehensive about purchasing property while 40 per cent said they weren’t deterred at all.
Loan Market director Mark De Martino said that elections and the substantial promises made and policies proposed often made it challenging for home buyers to determine what advantages they’d have after the government started a new term in office.
“Whichever government we see after the election, they’ll hopefully work towards improving our economy within the present low interest rate environment. Obviously lower interest rates are great for home owners but it does mean the broader economy isn’t facing challenges,” Mr De Martino said.
While a small majority of consumers were concerned about the impact the election would have on purchasing property, there remained a large group intent on buying, regardless of the election result.
“Purchasing property is a long-term commitment and while it can be good to wait for optimal buying conditions, it’s a buyers own personal circumstances and financial goals that should be the forefront considerations. Buyers should always prioritise the purchasing factors they can directly influence, such as savings levels and creating a budget,” he said.
Mr De Martino said that potential home buyers should closely watch how the federal election will affect their state-based governments, who control the levers for the more influential grants and purchasing concessions.
“Excessive stamp duty charges and a lack of concessions for First Home Buyers are hurting property purchases in most states. Once the election has been completed, its entirely possible that we’ll see the federal government support more state-based incentives for property purchases,” he said.
Has the upcoming federal election impacted your intentions to buy property?
a) Not at all 40%
b) I’m slightly more apprehensive 43%
c) I’m putting off buying until after the election 12%
d) I’ll buy when the Greens win 5%