With many preparing to act now, property investors are becoming more involved, according to a new survey. The 2019 PIPA Property Investor Sentiment Survey shows that Australians are increasingly interested in entering the property investment finance market, with 48% looking to buy property in the next six to twelve months.
Of those looking to invest in the next six to 12 months, 82% of investors believe that now is a good time to invest in residential property, which is up from 77% in the 2018 survey. 71 percent are interested in purchasing an established house, with the remaining distribution including townhouse/villa at 6%, unit/apartment at 6% and a house-and-land package at 2%.
The survey found that 98% of property investors are in the planning phase, while 26% have a comprehensive and modeled strategy to achieve long-term investment goals. There was a good representation from first-time investors. Of all respondents who purchased in the past 12 months, 21% purchased their first investment property in the year. Of these first-time purchasers, 75% purchased an existing property (down from 83% in 2018) while 16% purchased new or off-the-plan (up from 14% in 2018).
“Borderless investing is also popular, with 45 percent of investors looking to buy outside the state that they live in.” “While Brisbane is once more the preferred capital city for investment among respondents, there has been a dramatic rebound in Sydney’s appeal among investors – rising from nine percent in 2018 to 14 percent in 2019.”
“The rise of the rentvestor is well and truly established in this cohort. Among these first-time investors, just over one-third (34%) identified as renting elsewhere while the remaining 66% owned the home, they lived in,” says PIPA chairman Peter Koulizos.