Property Investors

Slowdown unlikely from Property Investors

Author: Ben Reid - Manager VAA

As most of our readers would already know, the topic of property investment has been a popular one in the media recently. We’ve seen lots of stories suggesting that property investors are making life difficult for first home buyers by pushing prices beyond the reach of many young couples. As a result, we’ve also seen lots of talk about the efforts of the Government, the Reserve Bank and others to restrict the activity of investors in the property market.

However, a recent survey of property investors around Australia has cast doubt on the effectiveness of these attempts to slow investment activity.

What Property Investors think

Momentum Wealth, a property investment advisory service in Perth, commissioned a nation-wide survey of more than 440 property investors to gain an understanding of whether increased interest rates and talk of tightening negative gearing rules had impacted on the investment market.

Rather being discouraged from investing in real estate, however, the survey found that the majority of property investors were looking to increase their exposure to property. In fact, more than 50% of investors said that they planned to expand their portfolios in the next 12 months, either by purchasing an additional rental property or developing an existing investment.

Where are Property Investors looking?

Another interesting statistic from this survey was the fact that that whilst many respondents believed that Sydney and Melbourne were the best cities to buy an investment property in, the locals in those cities were less optimistic than the wider community. Only 23% of survey respondents from New South Wales and Victoria indicated that they felt now is a good time to buy an investment property in their respective capital cities. In contrast, 53% of respondents from Western Australia believed now is a good time to buy an investment property in Perth, and 50% of respondents from Queensland felt that this a good time to buy an investment property there.

Of course, if you are planning on purchasing an investment property, whether as your first investment or to build your portfolio, it is always wise to seek out experienced, independent advice to help you in that process. And if you are considering selling and want to avoid to avoid some of the expensive traps that can catch out those vendors who are unprepared, you can start by getting your copy of our free booklet, “Fatal Real Estate Traps Exposed”. This publication has proven to be a valuable source of information for countless property sellers, so why not get your copy while you’re here?

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