Survey says investors are keen on property:
A study by one Australian mortgage broker indicates property is a priority for investors over the next two years.
The 2013 Homeowner Intentions Survey commissioned by Mortgage Choice shows 26 per cent of respondents are considering buying an investment property, with 56 per cent of these signifying they intend to make the purchase in the next two years.
A total of 1032 Australians who have a mortgage and have been a homeowner for two or more years completed the survey.
Belinda Williamson, head of corporate affairs at Mortgage Choice, says the results bode well for real estate.
“It’s really positive news for the property market to see a considerable chunk of homeowners weighing up the decision to purchase an investment property in the near future.
“With lenders’ interest rates on both home and investment property loans at their lowest point in recent years, it isn’t altogether surprising.”
The numbers show that of the 25 per cent of survey participants who own investment property, 68 per cent own one property, 19 per cent own two and 13 per cent own three or more.
Dominique Bergel-Grant, a director at Leapfrog Financial, believes property investment is in favor, but buyers are both educated and cautious.
“I think people have definitely got more confidence in the property market than they did 12 to 18 months ago, but people are being very savvy and quite slow in the purchase decision.”
Bergel-Grant sees the various sectors moving at different paces with first homeowners being locked out of the market by strong prices and high deposits.
“The people that are buying at the moment… are those people particularly with the cash in their bank account or the equity.
“I don’t think they’re (investors) pulling money out of shares or managed funds to invest.”
Bergel-Grant says most buyers are likely to take advantage of comparatively affordable blue-chip properties in the current market.
“It’s not as if they’re going out and buying cheap little properties. It’s really a case of them saying we want something for long-term capital growth.”
(API – 12 Jun 13)