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Property investor confidence remains high

By Robert Kirk

A majority of investors still believe it’s a good time to invest in residential property, a survey has found.

The Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey found that 58% of investors say they are looking to buy within the next six to 12 months, while 71% said now was a good time to invest in property. This is in spite of 32% of respondents saying changes to lenders’ investment policies have impacted their ability to secure finance.

Investors also seem unconcerned about the future of negative gearing. The survey found 72% of respondents were not worried about the potential removal of the concession, and only 2% said the current negative gearing arrangements were the key attraction of real estate investment.

Nearly half of the survey’s respondents (47%) said they were positively geared, and 63% of negatively geared investors said they expected to become positively geared within five years.

PIPA chair Ben Kingsley said the results showed most property investors saw the long-term benefits of residential property.

“Similar to last year, most property investors are looking past short term challenges, remaining focused on the long-term wealth benefits that are available from residential real estate, including the potential for capital growth and rental income. Importantly, most investors are not speculating on quick gains in a low interest rate environment,” Kingsley said.

Kingsley said the survey also demonstrated that discussion around negative gearing “misses the mark”.

“Most investors understand that negative gearing is only a short term cash flow position, not a property investment strategy. And only a very small minority are attracted to real estate for these tax concessions,” he said.

Full article and images here


Disclaimer: Accessing and using any information from this site is on the condition you read and agree to the following. Before making any financial commitment to any property you should seek professional advice from a qualified and registered financial advisor. While every attempt is made to keep the information accurate and current, this site should be used to locate properties of interest to carry out further investigation as to the viability and suitability of the investment property to your personal situation. Indicative returns on investment are just that ‘indicative’ being based on information provided from third parties in regard to sale price and expected rent to be obtained. They are not deemed to be the final return once all other costs e.g legal fees, stamp duty, rental fees, utilities connections and the like associated with buying a new home are added in. Using links from this site to other web sites and the like means you are accessing information from sites we have no control over, we will not be held liable for any loss incurred from the use of information from this site and outbound linked sites. Management of Empower Housing Group and Empower Housing Group WA April 2014.

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