There’s lots of reasons to feel confident about property in 2014, and of course there are a few issues that will have a negative impact on our markets, but a recently released survey from CommBank shows the momentum in the market with nearly half of home buyers surveyed saying they have recently bought or plan to buy an investment property.
While many home buyers were looking to invest, of those who were looking for a new home to live in, almost half of them intended to upgrade this year, a third planned to relocate and 14 per cent wanted to downsize.
Of course that’s what happens at this upturn stage of the cycle.
People read the papers, watch the news or go on line and (except for the few property pessimists still around) they hear the media talk up the property market, strong auction clearance rates, prices of property going up $1,000 a week and they want some of the action as well.
Of course they do – that’s human nature and why I used the words “momentum in the market.” This will be a major factor driving our property markets this year.
The biggest number of would be investors was in New South Wales, with 54 per cent planning to take the plunge.
The research did not determine whether buyers were investing in their home state or looking further afield.
Queensland had the lowest number of would-be investors, but even then a healthy 38 per cent intended to buy a property for investment.
About 23 per cent of Victorian homeowners said they intended to turn their current home into an investment property.[sam id=41 codes=’true’]
While 18 per cent of New South Wales investors were actually renting and buying a new property just for investment purposes.
The research found the key factors investors considered were how close a property was to amenities and the value of the home loan repayments.
Owner occupiers were keener on something low maintenance.
Clive van Horen, general manager home loans, Commonwealth Bank, said the research had confirmed that the investment drive was still quite strong.
“It revealed that the top three reasons why purchasers are considering investing in property, are firstly that it is the best investment opportunity available to them, secondly the low interest rates are worth taking advantage of and also thirdly just planning for their retirement looking for the income stream you get from property investment,’’ he said.
More Western Australian investors were looking to set themselves up for retirement than in any other state with 29 per cent buying for that purpose.
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