Budget uncertainties are certainly among the most highly considered topics, whenever an election comes around — and the looming May 2022 election presents no differently. As the incumbent and opposition parties commit to their campaigning and propositions to reinvigorate a post-pandemic Australia, keen to get back to business after the extended pandemic, it’s right for investors and homeowners alike to wonder what effect, if any, the elections would bring to bear upon their own financial decision making. If you’re like so many others waiting to see how election season may or may not affect the value of your property, then look no further than to your trusted real estate agent to get a sense of what the mid-year has in store.
Election fever aside, it’s easy enough to say that there’s been plenty going on throughout the past couple of years. Among these include rising property prices, much to the benefit of timely investments. But what about folks who’ve held on throughout this time, and may have been wondering about making a sale on their investment? With all that’s still going on, it’s reasonable for many to take a ‘wait and see’ approach towards understanding how the coming election might influence their investment properties. The truth is, the uncertainty from election outcomes does keep its influences on the property market, especially since there’s a fair share of investors and speculators similarly playing the same game of ‘wait and see’.
Cooling Prices Due to 2022 Election Uncertainty: A Golden Opportunity?
The age-old saying applies to the real estate market, as with any other: what goes up, must come down. With sky-high prices being reported all along Australia’s east coast through the pandemic, it’s been plain for plenty to anticipate that house prices would eventually cool. Apart from this happening around the time of a national election, and due to the potent uncertainty during the campaign period, this year’s anticipated cooling of real estate prices coincides with a number of other positive economic factors.
Among these includes the gradual raising of interest rates by the Reserve Bank of Australia, as a means of gearing the nation up in a process of post-pandemic recovery. With this adding to the handful of reasons why real estate values could potentially cool during the election, it could present homeowners with a golden opportunity to make the most out of current price highs.
Similarly, eager investors would stand to profit from the momentary cooling effect produced during the election season. With uncertainty looming around such a momentous political event, it’s easy to see why many would be keen to seize bargains with less competition perceived amid election fever. This doesn’t simply mean lower prices in Queensland, but potentially more options as fewer buyers may be as eager to commit to purchases before a federal electoral decision is made. Fewer competitors could also mean better negotiations, with buyers in better stead to discuss more attractive prices on their next investment.
It Could Be Time to Make a Smart Investment Move
Thinking outside the box, the anticipated cooling of real estate prices presents a time for potentially clever moves to be made – especially in the case of homeowners looking to downsize and grow their cash savings. Downsizing to a smaller home often nets long-time homeowners substantial savings, coupled with the excitement of relocating to a fresh new environment. Considering the earlier idea of there potentially being less competition around the time of the May elections, this could present house hunters with a bit more to save along with their move to downsize from a larger property.
Whether this has always been a part of your retirement plan or if it simply makes good dollars and sense for you to consider this year, the fact is that cooling house prices could bring bargains along with your new home — but only through due diligence and a well-timed exit from your larger property!
Of course, it’s always best to consult with your property agent if you intend to make the best out of a well-timed downsizing decision as has been described. With the month of May and the elections soon upon us, you couldn’t have found a better time to schedule a consultation with me!
Cooling Prices, Federal Elections, and The Importance of Timing Your Next Move
That all said, there’s clearly a limited window of time that will present itself with the anticipated cooling of the real estate market during the mid-year. This clearly leaves home owners with a limited opportunity to act upon. Of course, when the election wraps up, any uncertainty will be lifted as investors and potential buyers cast a firmer understanding of the impact of economic policies to come.
As the post-election appetite and confidence pick up throughout the market, this could very well mark the beginning of more commitment to bolstering the domestic and tourism-related economies, creating additional demand on property prices into the later half of 2022.
You Are Always Welcome to Consult With Me
Whether for a downsizing or to seek a great buying opportunity, major financial decisions such as these deserve the proper care and attention of a trusted real estate professional. No matter your sensing of the coming election and its potential to cool real estate prices throughout the market, your decision should always be backed by reliable counsel.
Of course, a quick check-in could easily address any concerns you might have to do with property valuation, as well as provide a pragmatic understanding of what you can expect to do, should property valuations cool towards the mid-year. Whether to sound off your ideas or clarify any doubts you may have, you are always welcome to consult with me at 0407 090 087 to understand what the federal elections could hold in affecting a potential sale or purchase.
