Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

Property investors bullish on the market

By Cameron Micallef · October 04 2019
Reading:
egg

Invest

Property investors bullish on the market

By Cameron Micallef
October 04 2019
Reading:
egg
Property investors bullish on the market

Property investors bullish on the market

author image
By Cameron Micallef · October 04 2019
Reading:
egg
Property investors bullish on the market

Property investors are becoming increasingly bullish about the current market following a sustained period of recovery, a new survey has revealed.

According to the Property Investment Professionals of Australia’s (PIPA) national survey, 82 per cent of investors think it is now a good time to buy, up 5 per cent from 2018’s result. 

PIPA chairman Peter Koulizos said “long-term capital growth beat out cash flow – both long- and short-term – as the most important aspect when choosing an investment”.

Where are investors buying?

While Brisbane is once again the preferred capital city for investment among respondents, there has been a dramatic rebound in Sydney’s appeal among investors.

Advertisement
Advertisement

Brisbane remains the hottest spot according to property investors, with 44 per cent of investors believing it offers the best investment prospects.

Melbourne has come in second, with 27 per cent of investors believing it to be the best place to buy. 

For Sydney, just 14 per cent of investors see the harbourside city as offering up the best prospects.

The survey also found that strong regional growth has not swayed property investors; 73 per cent prefer metropolitan markets to regional locations.

Only 8 per cent of investors expressed the opinion that coastal locations are the most appealing place to buy, while investors previously scared by the mining collapse are cautious of mining towns, with just 1 per cent saying it the most appealing place to buy.

Breaking up with the big four

The survey also looked at the popularity of investment lenders, finding that the big four banks are losing popularity with this class of borrower.

It found that 27 per cent of investors are choosing to secure loans from a non-major bank lender.

According to the results, cheaper rates and increasing borrowing powers are the two main factors swaying investors from the big banks.

However, given the recent tightening of lending conditions, some investors are finding the property market difficult.

“Given tight lending conditions and the financial sector’s response to the banking royal commission, a staggering 25 per cent of respondents have found they were unable to refinance an amount they were able to borrow previously,” Mr Koulizos highlighted. 

Property investors bullish on the market
Property investors bullish on the market
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.