Australian Investors Delay Buying Until After Boost
2009 Property Investor Survey - Melbourne is the city of choice
Mortgage Choice Media Release | 23rd June 2009
Australia’s largest independently-owned mortgage broker, Mortgage Choice has discovered that three out of four Australians planning to buy an investment property in the next two years are waiting until the First Home Owner Boost (FHOB) expires.
76% of the 1,038 respondents to the 2009 Property Investors Survey said they were delaying their upcoming investment property purchase until the FHOB finishes on 31 December 2009. Interestingly, before the extension was announced, only 26% were delaying their purchase until the initial completion date of 30 June 2009 had been reached.
Mortgage Choice senior corporate affairs manager, Kristy Sheppard said the survey highlights an observation made recently by many of the company’s franchisees. “We have been hearing from a number of corners that property investors are all set and ready to go once the Boost has had its day. Competition from first homebuyers has been so intense since late last year that most investors seem to have stepped back for the moment. A large number are calling our loan consultants to see how much money they can borrow from the various lenders on our panel and getting their finances in order, all in preparation for hitting the ground running to purchase in 2010 and 2011,” she said.
44% of respondents, all of whom are purchasing an investment property in the next two years, were Generation X*, 27% were Generation Y, 28% were Baby Boomers and one percent were Builders. 25 years of age was the most popular age upon purchase for Gen Y, at 15%.
South Australia had the least number of Gen X and Gen Y respondents than all other states and territories (at 38% and 17%, respectively) and the most number of Baby Boomers (at 40%).
Over one third of the respondents - 37% - rated their level of confidence in their state’s housing market as ‘high’ (32%) to ‘very high’ (5%). 57% rated it ‘moderate’, 6% rated it ‘low’ and only 1% rated their confidence as ‘very low’.
Queensland respondents were the most confident in their state’s housing market with 40% indicating ‘high’ or ‘very high’ confidence, followed by Victoria at 37% and South Australia at 36%.
In some good news for the housing industry, of all the annual survey respondents, 64% already own a home yet plan to add to their portfolio by buying an investment property/ies in the next two years. Surprisingly, 20% plan to buy both a home and investment property/ies in the next two years, while 13% were planning on entering the property market for the very first time forgoing their First Home Owner Grant to buy an investment property before a home. 3% plan to sell their home and buy an investment property/ies.
For more information you can read the full media release here:
Mortgage Choice - Media Release
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