Federal election a catalyst for sale of prestige homes

A slew of prestige homeowners are rushing to put their homes on the market before the federal election.

Nancy Joffee's home in Sydney's Watsons Bay.

A slew of prestige homeowners are rushing to put their homes on the market in a bid to nab buyers concerned about proposed regulatory changes in the wake of the federal election.

Changes proposed by the Coalition could include capping a superannuation tax-free threshold at $1.6 million, potentially compelling investors to take money out of super to invest in other asset classes. Labor proposes to scrap negative gearing concessions on new property purchases.

“Some people wait until after an election to take their home to market, but for us it’s had the opposite effect,” Watsons Bay homeowner Nancy Joffee told The Weekend Australian.

“We just thought that for the smart investor, they would prefer to capture a property under the current system when they still know what they’ll be entitled to from a negative-gearing perspective.”

The marketing business owner has just listed her elegant $5.5m townhouse with park and water views in the tiny enclave on the tip of Sydney’s eastern beaches, as she prepares for a tree-change to Byron Bay. If all goes to plan, she’ll have netted a buyer before July’s election and potential changes to a raft of legislation.

Ms Joffee isn’t alone. Agents have reported a spike in vendors keen to sell in off-market campaigns that test the market without the cost of a full-scale campaign.

“We’ve got a captive audience of buyers, but there’s a sense that we’re at the peak of a seven-year market and vendors just don’t know which way it will go,” McGrath agent Simon Exleton said.

Buyers are less concerned about the prospect of an election, and have not been moved greatly by the latest fall in interest rates, but both factors play a role in determining how confident they feel, he said. “Another drop in interest rates doesn’t make that much difference to a 30-year mortgage — but it does play a role in giving someone confidence in putting down a deposit cheque today or not,” Mr Exleton said.