Investors see change of government as good for property

IT CAN be incredible the impact that a little thing like a potential change in government can have on the property market.

A change of government could have repercussions for the property market.

IT CAN be incredible the impact that a little thing like a potential change in government can have on the property market.

Since Prime Minister Julia Gillard announced the date for this year's federal election, pundits have focused on what we can expect to see from the major parties in what could be seen as an extremely long election campaign.

But what many Australians might want to focus on is what will happen to interest rates and any decision to buy or sell?

Coffs Coast experts believe this year's election might not have the slowing influence seen in the past.

Professionals Sawtell Real Estate licensee Tom Sullivan sees signs that this election year may not bring the sort of property dry-spell sometimes seen.

While uncertainty over who will be in charge of the economy can sometimes provoke a wary wait-and-see approach, Mr Sullivan said early suggestions were that the similarities between Labor and the Coalition could mean there will be little impact on property no matter who gets the nod on September 14.

He said that since the election was announced there had been no noticeable drop-off in interest from buyers.

"We've had a change of government not too long ago and it didn't make too much of a difference, so there is some similarity between the major parties that might not be influencing people's decisions as much," Mr Sullivan said.

"Last year was a bit of a turn- around in the real estate market and buyer confidence did improve significantly.

"We have seen some signs of good property growth last year and some props were selling for prices we wouldn't have expected in the current climate and we're hoping that will continue this year."

First National Real Estate Coffs Harbour managing director Barry Booth agrees and believes the election date being announced early is a positive for property.

"I think it will have less impact than in normal years because the election was announced well in advance," Mr Booth said.

He said many in the real estate industry believed there would be a change of government at the election and this took some of the uncertainty out of the equation for buyers.

"I think the majority of property people see there will be a change of government and I think a lot of people on the investment side of things will look positively at that," he said.

An upturn in the market in the last half of 2012 would also contribute to people showing more confidence that now was the right time to buy.

"Generally I think there's certainly more buyers in the market at the start of this year compared with last year.

"The reason is that interest rates are lower and the threat of rises in the near future is almost gone," Mr Booth said.