Australian property investors continue to dominate the market, with the percentage of investors eclipsing 30 per cent. According to new research conducted by Mortgage Choice, investors currently account for just over 30 per cent of all new loans written – significantly higher than the 27 per cent recorded just 12 months ago.
It is unsurprising to see a spike in investor activity as, according to the company’s latest First Time Investor survey, this type of buyer not only sees property as a lucrative investment, but as a way to "future proof" their wealth. Almost 76 per cent of respondents said they would purchase an investment property to set themselves up financially for the future.
58.3 per cent of first time investors said they see more benefit in investments such as property, than they do in the share market.
This sentiment suggests people feel very confident about the Australian property market and believe there are many benefits associated with owning an investment property.
In fact, 47.1 per cent respondents said buying an investment property would help them prepare for retirement. It is good to see Australians taking the right attitude towards property investment. First time investors do not see property investment as a quick win, but as part of their long-term financial strategy.
But while investor activity as a whole is on the rise, it seems rising property prices are making it harder for investors to buy alone. According to the data, just 29.9 per cent of first time investors said they would purchase an investment property by themselves.
If you would like learn more about your home loan or financial advice options, call us on 07 3366 8604 or visit www.mortgagechoice.com.au/caroline.jean-baptiste.