Wondering what’s ahead in property for 2019?
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 over 1,800 Australians feel about our current real estate markets and what they plan to do.
You see…they took part in this year’s Property Investor Sentiment Survey run by my Property Update newsletter in conjunction with Your Investment Property magazine and onthehouse.com.au
Being Australia’s longest-running and largest survey of Australian property investor sentiment, it showcases insights from property investors and would be investors across the country.
Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time.
One of the surprises is that despite our property markets moving to the slowdown phase of the cycle more than half of the respondents believe now is a good time to invest despite the fact that the vast majority of respondents (84%) believe that property prices will fall or remain flat over the next year.
Clearly, they are taking a long-term view.
However, this is significantly down from last year when 61% of respondents thought it was a good time to invest.
At the same time, the percentage that were unsure increased to 23% (up from 16% last year.)
However, they are realistic that they won’t enjoy quick and massive capital growth in the near future, but they still intend to buy more property in the next year.
Our survey reveals that 42% of the respondents plan to buy an investment in the next year again showing strong confidence in property as a long-term investment.
Not surprisingly this is down from the last 2 years where on both occasions more than half (52%) the respondents were planning to invest in the coming year.
It’s also interesting to note where investors are planning to buy.
- South East Queensland is seen as the best place to invest over the next 5 years according to close to 70% of respondents (this includes Brisbane, the Gold Coast and Sunshine Coast.)
- Last year more than half of the respondents nominated Melbourne as the place to be last year,
Their focus is on long-term capital growth, rather than an immediate equity boost, and they’re looking at property that has potential to add value,
Perhaps unsurprisingly, it also reveals that many investors are feeling the impact of credit squeeze with bank’s tighter lending restrictions.
Almost half of respondents are finding the recent tighter lending criteria impacting their ability to purchase another property.
Interestingly this is only slightly higher this year (48%) than last year (46%)
19% of respondents plan to buy a new home in 2019. This is down from 23% last year (but still higher than the number planning to buy a new home 24 months ago (14%)
Links and Resources:
Ahmad Imam – Director Metropole Sydney
Sarah Megginson Editor Your Investment Property Magazine
Results of the 2018 Property Investor Sentiment Survey
Some of our favourite quotes from the show:
“And again, it’s not a competition, but it’s interesting to know what people are thinking, what they’re planning to do, because that’s going to, I guess, set the scene for the markets for the next year.” –Michael Yardney
“The average property writer for the big media, they’re young people who probably have no background in real estate and wonder about these ugly greedy investors who’ve got properties, and they’re almost asking for the property market to crash.” –Michael Yardney
“I’d rather buy in the better location and a smaller component of land, than further out in a house with a big block of land that isn’t going to do as well. As we keep saying, it’s the location that does the heavy lifting.” –Michael Yardney
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