Worried about the impact of the election on property? Don't.

While property was a contentious issue in the lead up to the 2016 and 2019 federal elections, it’s set to be a no show in the current campaign.

With Federal Labor ending their pursuit of policies surrounding negative gearing and capital gains tax deductions, and with neither party making major changes that will negatively impact either first-home buyers or investors, we're unlikely to see housing policies weighing in on either side of the competition.

In fact the biggest impact is likely to be vendors avoiding scheduling auctions on polling day, following on from the brief break that generally occurs as people are away throughout the autumn school holidays, and the Easter and Anzac Day long weekends.

So should you be concerned about the impact of the election on your investment plans? No. Here’s why.

TIME IN THE MARKET VS TIMING THE MARKET

Property values are subject to market cycles, and the property market will always have its challenges, whether its changes to tax rules and government policies, interest rates, building issues, compliance, or something else.

So while timing a purchase well can indeed be beneficial in the short term, it becomes less important for investors over time. A successful property investment strategy is always one that looks to the long term future, and successful property investors will tell you time in the market is far more important than timing the market.

Ultimately, waiting for the perfect time to invest is not only difficult, it can delay your entry into the property market so you miss out on great opportunities in the meantime. Even worse – it can stall your property investment strategy altogether.

FOCUS ON WHAT YOU CAN CONTROL

The key to successful property investment is to stay calm and not let indecision distract you from your long term plans. Timing is irrelevant if you’re not buying the right assets and short term market fluctuations have less impact on returns when you’ve bought the right property for your overall, long term strategy. So focus on the important things you can control – great location and long term growth potential – and you will ultimately outperform in the long run, regardless of when you buy.

The reality is that purchasing property as an investment has always been an expensive and challenging exercise, and most likely always will be. But as investors, learning to minimise the impact of your emotions and developing an investment plan based on facts, data and research is a better way. Because there are always affordable places to live and invest – if you understand where to look.

And with Australia blessed with a stable government (regardless of who is in power), and with both major parties committed to keeping the property market afloat, there has never been a better time to get into the property market or continue to grow your existing portfolio.

If you’re interested in learning how to build long term wealth through Australian Property, book in a discovery call with one of our mentors today.

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