If there is one certainty this year it is that the Federal Election will be held on or before 17 May.

Of course, the multimillion-dollar question is what date exactly it will be. Well, there are only few people on the planet who know the answer to that question.

In the meantime, though, what impact do Federal Elections generally have on housing markets?

The truth of the matter is that they should have no effect whatsoever, but sometimes property investment policies, in particular, become a political football, and buyers and sellers become nervous about what the future might hold.

Over the years, changes to negative gearing and Capital Gains Tax have been key election policy positions with the ALP’s push to limit these long-standing taxation programs in 2019 widely considered to be the reason why it failed to win office that year.

While some sections of the media have tried to reignite the negative gearing debate, the Prime Minister has gone on record several times disputing any potential changes to the policy, which I don’t believe he has ever done before.

Housing election promises

So, with negative gearing off the table it seems, what are some of election housing policies?

The ALP has made a number of commitments to bolster social and affordable housing during its term, as well as setting its “rather” ambitious goal of building 1.2 million homes by the end of this decade.

It has also continued to fund the Home Guarantee Scheme as well as created the Help to Buy program, which will see the government take an equity stake of up to 40 per cent to assist low and middle income households to purchase a home.

The LNP, on the other hand, will allow Australians to access up to $50,000 from their super to buy their first home. The money initially withdrawn from super will need to be returned when the house is sold to support retirement.

It is also promising to unlock up to 500,000 new homes by investing $5 billion to fund essential infrastructure like water, power, and sewerage at housing development sites.

State of the market

So, as we head into the second month of 2025 already, what is the current state of major markets around the nation?

According to CoreLogic’s Home Value Index (HVI), the national market ended last year on a negative note, with values down -0.1 per cent over the month after peaking in October and holding flat in November.

The December decline in the national HVI was enough to drag the quarterly change into negative territory, also down -0.1 per cent, to mark the end of what has been a surprisingly strong and resilient period of growth between February 2023 and October 2024 – a period characterised by high interest rates, cost of living pressures and reduced borrowing capacity, according to CoreLogic.

Of course, some markets, such as Brisbane, Adelaide and Perth, have continued to post positive price growth, but it appears that these rises are moderating, which is a natural part of market cycles after all.

As I’ve often said before, the best time to purchase an investment property to hold over the medium to long-term is when you are in the financial position to do so.

It matters not a jot whether there is a Federal Election on the horizon or if property prices are going up, down or sideways.

What always matters the most is buying the very best property in the very best location for your budget as well as for your future financial hopes and dreams.