The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
22 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 500 ALREADY ATTENDING
22 DAYS UNTIL OUR FLAGSHIP CONFERENCE 500+ ALREADY ATTENDING
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterWed 27 Sep 17

Australian Property Investors Stay Confident

iStock-618531302_620x380

Australian property investors have remained optimistic about the long-term benefits of residential real estate, despite the ever-looming concerns surrounding stricter lending conditions, oversupply and surcharges imposed on foreign buyers.

Th Property Investment Professionals of Australia's (PIPA), Property Investor Sentiment Survey, after surveying 742 property investors, found that more than 70 per cent of respondents think now is a good time to invest in property, with 61 per cent looking to purchase a property in the next six to 12 months (up from 58 per cent last year).

However, concerns over changes to investor lending policies loom large, with 43 per cent of respondents reporting an adverse impact in their ability to secure finance, compared to 32 per cent in 2016.

Rising rates on interest only loans were also a key concern, though the majority of investors (55 per cent) with interest only loans said they would not struggle to meet new principal and interest repayments.

PIPA Chair Ben Kingsley said that the survey results confirmed that investors remain committed to property as a favourable investment option over the long-term.

“It has been an eventful time for residential property investors since we published our last survey in 2016," he said.

"Similar to last year, most property investors are looking past short-term challenges and are remaining focused on the long-term wealth benefits that are available from residential real estate.

Kingsley said that the data suggested a lot of the speculation about negative gearing misses the mark.

"Most investors understand that negative gearing is only a short-term cash flow position, not a property investment strategy," he said.

More than 23 per cent of surveyed investors said they would consider refinancing their loan for an interest rate differential of 0.5 percentage points, while another 23 per cent would consider refinancing for one percentage point.

According to the survey, only 15 per cent of investors have put their buying plans on hold due to concerns around a property price "bubble". Similarly, investors shrugged off speculation about negative gearing and capital gains tax changes, with only 14 per cent putting their investment plans on hold.

The survey also shows that only half (52 per cent) of property investors are currently negatively geared, with a majority (62 per cent) of these expecting to become positively geared within five years.

Although investors are becoming more sophisticated, with 33 per cent having a set strategy for investing, 84 per cent consider that more investment education about the risks and potential benefits of investing in property is needed. Even higher numbers (90 per cent) believe that the property investment industry should be regulated and licensed in the same way as many other professionals.
Brisbane remains top capital city pick 
Despite being the most preferred destination for property investors, Brisbane has lost some appeal, with the proportion of investors favouring it falling from 49 per cent to 43 per cent over the past year. However, the city remains far ahead of any other capital city when it comes to investor interest.

After Brisbane, Melbourne is the second most popular investment destination (32 per cent), followed by Sydney (7.8 per cent), Adelaide (6.6 per cent) and Perth (5.5 per cent).

ResidentialAustraliaReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
View All >
Construction workers building social housing in Gosford, New South Wales.
Affordable & Social Housing

Housing Australia Adds 18,000 Homes as Contracts Confirmed

Marisa Wikramanayake
Dexus Sydney CBD Supertall EDM
Planning

City Backs Height Boost for Sydney Supertall Towers

Vanessa Croll
FK's rendering of Woolworths and Pace's plans for the ex-ABC studio site at 10-16 Selwyn Street in Elsternwick, Melbourne.
Residential

Mayor Rounds on State After Elsternwick Approval

Marisa Wikramanayake
Pace and Woolworths plans for a former ABC Studios site have been greenlit, but not everyone is happy with the decision…
LATEST
Construction workers building social housing in Gosford, New South Wales.
Affordable & Social Housing

Housing Australia Adds 18,000 Homes as Contracts Confirmed

Marisa Wikramanayake
2 Min
Dexus Sydney CBD Supertall EDM
Planning

City Backs Height Boost for Sydney Supertall Towers

Vanessa Croll
3 Min
FK's rendering of Woolworths and Pace's plans for the ex-ABC studio site at 10-16 Selwyn Street in Elsternwick, Melbourne.
Residential

Mayor Rounds on State After Elsternwick Approval

Marisa Wikramanayake
3 Min
Residential

Thirdi Lifts Covers on 500-Home Precinct at Gladesville

Lindsay Saunders
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/australian-property-investors-stay-confident-despite-pressures