More than one quarter of homeowners intend to buy an investment property
More than one quarter (26%) of Australian homeowners are considering buying an investment property, with 56% of these indicating they intend to make the purchase in the next two years.
These are some of the findings from the 2013 Homeowner Intentions Survey (the Survey) of over 1,000 Australian mortgage holders, conducted by Mortgage Choice. The findings are a welcome sign that Australians are beginning to feel confident enough to take advantage of the current low interest rates, and are considering making a significant investment in property.
Speaking about the results of the Survey, local Mortgage Choice franchise owner, Dwayne Brittain said, “It is 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 Survey also revealed that Australians’ love affair with bricks and mortar shows no sign of abating. Of the 25% of respondents who already own an investment property, 68% own one property, 19% own two, and 13% own three or more properties. Dwayne said there was a close race at the top when respondents were asked about their top five most sought after aspects of an investment property. “66% of respondents said that their focus was tenant demand in the area, and almost the same number – 65% – said they wanted an investment property in the right suburb and street,” he said.
Rounding out the top five factors buyers look for in an investment property was the locality in relation to amenities and entertainment (53%), population growth in the area (46%) and infrastructure going into the area (44%).
By far the most preferred investment strategy (59%) for respondents was to buy an average property in an up and coming area and to hold onto the property.
Dwayne concluded by saying that understanding your financial goals and deciding on the right strategy to achieve them was of paramount importance when making any investment decision, including property investment.
“If you need help refining your investment strategy, a professional adviser is a great place to start. The same goes for home or investment property loans. Assessing the pros and cons of the different loan options can be a daunting task, so don’t hesitate to ask for help from a professional mortgage broker, such as myself.” If you want to learn more about your home loan options, call Dwayne on 0428434084