Why Waiting for the Election Before Buying a Property is a Mistake
In This Week’s How's The Market | Edition 98
Why Waiting for the Election Before Buying a Property is a Mistake
Luxurious Living in the Heart of South Yarra
Big bank puts in double rate cut ahead of Reserve Bank move
Why Waiting for the Election Before Buying a Property is a Mistake
As an election approaches, property buyers and investors often hesitate, uncertain about how the political landscape might impact the market. This hesitation, commonly known as “poll paralysis,” leads many to delay their buying decisions, waiting for clarity on policies and economic direction. But does this actually benefit buyers?
The short answer: No.
We believe that sitting on the sidelines during an election period can mean missed opportunities - and potentially higher property prices in the long run. Here’s why you should stay active in the market rather than waiting for the political dust to settle
1. Elections Don’t Drastically Impact the Property Market
While government policy can shape the broader economic environment, history has shown that elections rarely cause major property market shifts in the short term. Australia has a stable political system, and major parties generally avoid drastic property-related policy changes that could destabilize the market.
2. Market Activity Slows - Creating Buying Opportunities
During election cycles, many buyers and sellers put their decisions on hold due to uncertainty. This leads to fewer active buyers, less competition, and often, better deals for those who act while others hesitate. If you’re in a position to buy, election periods can be a prime time to negotiate and secure a great property.
3. Political Changes Take Time to Materialise
Even if a new government introduces property-related policies, such changes don’t happen overnight. Tax reforms, housing supply initiatives, or first-home buyer grants typically take months or years to implement. Meanwhile, property values continue to rise, meaning delays could cost you in capital growth.
4. Long-Term Thinking Wins in Real Estate
Successful property buyers think long-term. The average Australian holds onto their property for about 11 years, meaning they’ll experience multiple elections, economic cycles, and policy changes. The key is to buy based on your financial goals and market fundamentals, not temporary political events.
5. How to Capitalize on Election Hesitation
Rather than waiting in uncertainty, strategic buyers can use poll paralysis to their advantage:
Less competition means fewer bidding wars and better chances of securing a deal.
Sellers may be more motivated to negotiate if there’s reduced buyer demand.
Well-connected buyers’ agents can help uncover opportunities while others hesitate.
Delaying a property purchase simply because an election is approaching is rarely a wise strategy. While political outcomes may create temporary uncertainty, real estate fundamentals remain the key drivers of long-term growth and success.
If you’re looking to navigate the market with confidence, our team at Tomii Property is here to help. Get in touch with us today and let’s secure your next property—while others are still waiting on the sidelines.
What The Agents Are Saying
The market is heating up.
The sub $700k market has taken off with a strong start to 2025.
Inner city markets have also seen inspection numbers rising and I’m already hearing a shift in the dialogue from real estate agents compared to late last year.
Where last year I was hearing many agents say that they would sell prior to auction and an offer in writing would likely end the campaign, this year I am hearing agents say that their vendors have advised them to run straight to auction and not look at offers prior.
Perhaps this is due to the increased buyer numbers at opens or a general increase in sentiment.
It’s still too early to tell how the market will react to the first big auction weekends in mid to late February, though I suspect they will be a big predictor for the market in the early months of the year.
The Wow Factor!
9 Kensington Road, South Yarra, Vic 3141
This luxurious Victorian residence, situated in a coveted South Yarra avenue, offers light-filled living spaces and a private sanctuary with a sublime level of sophistication.
The grand Italianate balcony residence blends period grandeur with modern elegance, offering an effortless lifestyle near South Yarra's attractions.
Behind the home's timeless period facade, an inviting grand hallway reveals the expansive proportions and exquisite original features that are the hallmarks of this magnificent double-storey home.
The ground floor features a stunning formal living and dining room with decorative ceiling roses and fireplaces, complemented by a triple bay window and French doors leading to a private side courtyard.
Experience a rare opportunity in a Blue-Chip Suburb
Price Guide:$8,200,000 - $9,000,000
In The Media
Big bank puts in double rate cut ahead of Reserve Bank move
A major four bank has made a double-cut in interest rates, marking the first of its kind this year, ahead of the Reserve Bank's February meeting.
National Australia Bank's fixed rate mortgage for owner-occupied properties was reduced by 0.25 percentage points, resulting in a 0.3 percentage point drop for investors.
According to Canstar calculations, one 0.25pp cut would give someone with a $600,000 debt and 25 years remaining on their loan $92 dollars back to their budget immediately if the banks passed it on in full.
ANZ recently reduced interest rates, but they still need to compete with SWSbank's 4.99 per cent fixed term for owner-occupiers with $800,000 or more loans.
NAB offers the lowest fixed rate of 5.84% for owner occupiers with a 20% deposit on a three-year term, while ANZ maintains the lowest at 5.74% for two and three-year terms.
The move could trigger a fresh round of interest rate reductions for homeowners, with Canstar.com.au data insights director, Sally Tindall saying “other banks are likely to follow”.
Homeowners eagerly await a cash rate cut over a year, but with the RBA poised to move, it's unlikely to be a widespread cut.
Final Thoughts
By staying active in the market while others hesitate, savvy buyers can secure prime properties, negotiate better deals, and position themselves for future gains.
At Tomii Property, we help buyers navigate the market with confidence—no matter the political climate. If you're ready to take advantage of today’s opportunities, get in touch with our team and let’s make your next move a smart one
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
