Thursday 21 Jan 2016
Property investors across Australia remain optimistic about the real estate market with nearly one in two investors wanting to buy an investment property in the next 12 months.
A survey of nearly 600 property investors across Australia by Momentum Wealth found that 45% of respondents said their main goal for the next year was to buy an investment property to continue building their portfolios.
Acquiring property was the most popular goal for investors, while 26% of respondents said their main goal over the next 12 months was to review their current property portfolio and 17% said they would continue saving to buy their next investment property.
There were plenty of great investment opportunities around the country, but investors needed to be vigilant.
For any investment, research is key. A high-performing investment property can deliver huge returns to an investor but choosing the wrong property can be a significant financial burden.
One of the most common misconceptions is that all properties within a city experience the same rate of capital growth. However, investors need to remember that there are dozens of markets within a single city, some of which will increase in price while others will stagnate or possibly fall in value.
Among the respondents, established houses were the most popular type of investment property to purchase, with 48% of investors saying this option appealed to them the most. This was followed by development sites or syndicates on 25%, new house and land on 11% and apartments or units on 8%.
The data was taken from Momentum Wealthï¿½s annual Property Investor Survey, which captures the latest trends and preferences of Australian property investors.
The results revealing the bullish sentiment of property investors for the year ahead comes as Momentum Wealth holds its upcoming annual market outlook seminar.
When asked to identify the biggest roadblock to buying an investment property right now, 18% of respondents noted life circumstances as the main barrier. 16% also said that they didn't have enough equity while 13% said they didn't think it was the right time to buy.
It's not uncommon for people to find reasons to delay buying an investment property, whether it be financial or life constraints, Mr Collins said. However, with the right advice and financial structures, savvy investors are able to buy properties that will outperform the market and generate significant personal wealth.