End of tax year will drive property markets
As the financial year draws toward a close, investors and self-managed super funds will be driving activity in the property market, a real estate group has claimed.
Angus Raine, the executive chairman of real estate group Raine & Horne, has speculated that the impending end of the financial year will help to drive housing market activity.
“With the end of the tax year fast approaching, many investors and self-managed super funds will be weighing up whether to rebalance in or out of real estate assets and will act well before the June 30 cut-off,” Raine said.
Raine said the threat of a July Federal election could also help appraisal, listing and sales numbers hold their ground as the end of the financial year approaches.
While spring has traditionally been seen as the selling season for the Australian real estate market, Raine said the market was shifting to more year-round activity.
“Buyers are driven to secure a property for a wide variety of reasons, whether it’s to secure a tax-effective investment for a self-managed super fund, or a home to live in – and the season makes little difference to them,” Raine said. “If the vendor settles on a realistic price and the property is well presented, it won’t matter to buyers whether it’s spring or autumn.”
And while Raine conceded that there were likely to be more properties for sale during the traditional spring selling season, he said vendors could benefit from listing their property at a different time of year.
“If there are fewer properties for sale in April and May than September, and more or less the same number of buyers, it stands to reason that an autumn sale can make plenty of sense,” he said.
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