According to a new survey by PIPA, investors are shown to be more positive about the property market compared to the same time last year. The nationwide annual survey, which collected data from 1,200 property investors, also showed that the proposed changes in negative gearing by Labor and Capital Gains tax legislation had a strong influence on how three-quarters of investors voted in the May Federal Election.
“It’s clear that many investors, regardless of their political leanings, were fed up with being told they were ‘greedy’ when the vast majority own only one property and are just trying to improve their financial futures,” PIPA Chairman Peter Koulizos says.
Koulizos says investors suggested by the survey were willing to look outside the major banks to secure investment finance. “Difficulty obtaining finance, as well as the popularity of banks being on the slide over the past year, means that about 60% of investors are now more likely to consider a non-major bank lender, especially after the outcomes of Banking Royal Commission,” he says.
The survey found that in the past year 27 percent of investors received a loan from a non-major bank lender, the top two factors being lower interest rates and increased lending capacity. Also demonstrated in this year’s survey was the need for better professional standards and property investment advice industry regulation.
88 percent of investors continue to believe that more education is needed around the risks and benefits of investing in property, plus virtually all 93 percent of respondents believe that any provider of advice should have formal training. “Property investors again are asking for more rigorous standards in the real estate investment advice sector, yet, it remains stubbornly unregulated,” Mr. Koulizos said.