[Podcast] Here’s what 1,700 investors think is going to happen to property in 2022, with Brett Warren

Are you wondering what’s ahead in property for 2022?

Maybe you’d like to know what other Australian property investors plan to do?

Well, that’s exactly what we discuss in today’s show as we unpack the results of this year’s Property Investor Sentiment Survey.

You’ll hear what 1,700 Australians feel about our current real estate markets and what they plan to do. And you’ll also hear what Covid did to their property plans and how if at all it changed their strategy

You see…they took part in this year’s Property Investor Sentiment Survey run by my Property Update newsletter in conjunction with Yahoo Finance

Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time.

And as usual, I’ll share a mindset message with you because if you can change your thinking it could change your life.

What you need to know about this year’s Property Investor Sentiment Survey

While we may all be in the same ocean, we are not in the same boat, and while some Australians have lost their jobs or are working shorter hours and have suffered financially, others are doing the same as before the pandemic or better.

Sure 2021 will be a year many of us would rather forget, even though very few of us ever will.

However, for homeowners and property investors it will be a year when the value of their properties will have increased by up to 20% - in some cases, they will earn more from property capital growth than they will from their day job.

1. Investors are more cautious this year

A surprising result this year was that while only 12.4% of the respondents said their household finances had worsened because of the pandemic.

In other words, most Australian households have noticed no real change or an improvement to their family finances, only 55.2% believe now is a good time to invest in residential real estate.

However, 24.7% of respondents plan to buy a new home in 2022 (up a little from 24% last year and 20% the year before.)

2. How did the pandemic affect your household finances

57% of respondents said there was no real change to the household finances, while 28% said their household finances had improved.

This is no real surprise as, despite Covid, lockdowns, and a recession last year, recent Australian Bureau of Statistics figures show the average Australian is getting richer.

We also asked some Covid-specific questions in this year’s survey. Some of these questions include:

• Are you considering moving to live in a different location because of Covid 19?
  • Most are not, though they may have been considering it before things began to settle down
• Is this a good time to invest in property?
  • People are less confident this year and less likely to want to invest than they were last year.
• if the Coronavirus pandemic had changed their attitude or approach to property investing?
  • In general, attitudes remained about the same as last year
• Has the pandemic impacted your immediate investment plans in the next 12 months?
  • Most are sticking to their original plans
• Have you requested a mortgage repayment holiday from your lenders?
• Have you received a request for a rental reduction or holiday because of COVID-19 from your tenants?
• Has the pandemic changed your work situation?
• How has the pandemic affected your household finances?
• Do you think now is a good time to fix interest rates?
• Whose advice do you seek (or plan to seek) for property investment advice?
  • About a third of the respondents planned to seek advice from a property strategist or advisor

The bottom line:

It’s clear that property investor confidence remains strong and those who can afford to are planning to take advantage of the investment opportunities are housing market is currently offering by buying another investment property or new home if finances allow.

Our survey shows that Australian property investors focus on long-term capital growth, rather than cash flow and many are looking for a property that has the potential to add value, rather than waiting for the market to do the heavy lifting.

While investors will still face a number of hurdles with the economic challenges facing Australia, few have changed their long-term investment plans due to COVID-19.

Links and Resources:

Michael Yardney

Metropole Property Strategists

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Click here to read the full survey results.

Some of our favourite quotes from the show:

“No one’s born talented at making excuses.” – Michael Yardney

“Many Aussies are in at least as good a financial situation or better compared to when the pandemic began.” – Michael Yardney

“In general, people didn’t think it was as good a time to invest as last year.” – Michael Yardney

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