Are you planning to buy an investment property in 2019
Or maybe you plan to buy a new house?
Well, you'll be in good company, because more than half of the people surveyed in a recent poll believe the time is right to invest despite the fact that the vast majority of respondents (84% ) think real estate prices will fall or stay flat over the next year.
Obviously, they take a long-term view.
And 19% of respondents plan to buy a new home in 2019.
In November, Michael Yardney's Property Update, Your Investment Property magazine and onthehouse.com.au surveyed more than 1,800 real estate investors and would be investors for the 2018 Property Survey Investor Survey, the largest and most the oldest of its kind in Australia
Since 2011, it has provided a rich and dynamic insight into how trends and feelings of consumers of real estate have evolved over time.
You can download the full results of the survey and our analysis here, but here are some of the highlights.
A wide range of Australians – 1,802 mothers and ordinary fathers responded to the call. The fact that they already subscribed to Property Update or Your Investment Property Magazine meant that we had a captive audience of people already interested in the property.
When asked for their combined family income, 3.4% earned less than $ 50,000, while 26% earned more than $ 200,000, but most earned a combined family income of between $ 100 and $ 100. $ 200,000 and $ 200,000.
88% owned at least one investment property, but a wide range of investors participated in the survey:
• 12% had no investment
• 25% owned investment property
• 19% owned two investment properties
• 15% owned three investment properties
• 5% owned 10 or more properties
Some surprising results:
• 19% of respondents were rentvestors (renting their home but owning an investment property, but more than half of the respondents consider renting as a means of entering the real estate market.
• More than half of respondents believe that is now a good time to invest despite the fact that the vast majority of respondents (84%) think that real estate prices will fall or fall. will remain stable over the next year. Clearly, they take a long-term view.
However, this figure is significantly lower than last year, where 61% of respondents thought it was a good time to invest.
At the same time, the percentage of uncertainty rose to 16% (compared to 16% last year).
• 42% of respondents plan to buy an investment property during the next year again showing strong confidence in real estate as an investment in long term.
Not surprisingly, this is down from the last two years, when more than half (52%) of respondents planned to invest over the next two years.
• 19% of respondents plan to buy a new house in 2019 .
This represents a decline from 23% last year, but still exceeds the number of people considering buying a new home 24 months ago (14%)
• While 24% of respondents plan to seek advice from a real estate strategist or advisor, we find it surprising that 30% will not ask for any advice during their next real estate purchase . This is a matter of concern, because despite the considerable amount of research material and information available for free, there is nothing instantaneous on the Internet – it is the prospect that is acquired only after years experience in the field.
Some unsurprising results:
• Investors have less confidence in short-term capital growth than last year. 84% of respondents see property values ​​fall (64%) or stay flat (20%) next year. Last year, 64% of those surveyed thought that real estate prices would remain stable or increase by less than 5% compared to the following year.
• About 40% of respondents believe that it is time to lock in interest rates, suggesting that the next interest rate move of the RBA will increase. However, concerns about rising rates are lower this year than last year, while 46% of them felt the timing was right to lock in rates [1].
• Nearly half of those surveyed find that the stricter lending criteria recently imposed affect their ability to buy another property. It is interesting to note that this year is only slightly higher (48%) than last year (46%)
• Brisbane was considered the capital city most likely to generate strong capital growth over the next five years, followed by Brisbane. Note: The numbers in the table below are more than 100%, with multiple answers allowed for this question.
• A single-family house in the central and central suburbs of the capital city was considered the best medium-term investment (31%), while 27% would look for a property that could add value. It is clear that the properties of the regime are not in favor, with less than 1% of respondents believing to make good investments
• 41% of these investors saw an opportunity to "build" capital growth by buying real estate with potential for renovation or development. It's pretty much the same as last year (42%).
It is clear that the confidence of real estate investors is still strong and that those who can afford it are planning to remain as active as ever, buying another investment property or a new home if finances allow, while they do not expect capital growth over the next year.
This shows that Australian real estate investors are focusing on long-term capital growth, rather than an immediate increase in equity, while many are looking for a property that is likely to create value, rather than d & # 39; wait until the market does the work.
You can read the complete survey results here.
Can you afford to buy in this suburb? Find out how much you can borrow
