Mortgage Choice’s recent 2015 Investor Survey revealed some interesting results that everyone interested in investment property should know about. The survey targeted first time investors, and asked them a range of questions about their purchases and their intentions for the future. Unsurprisingly, first time investors were universally positive about their options and their future, with almost 80% stating that they believed investment property would help them be financially set in future years.
The survey looked at 1,025 first time property investors across NSW, Queensland, Victoria, South Australia and Western Australia, and particularly those who had just purchased property or who were planning to in the next two years. On the question of the main reasons for investing, the responses were as follows:
- People in all states believed that investment property was a good way to plan for the future, with an impressive 83% of Western Australians and 71% of Victorians believing this to be true.
- Half of the people in Victoria and 64% of those in South Australia surveyed said that planning for their retirement was the most important factor in buying property.
- In NSW, almost 20% of those surveyed believed that they might consider investment property because they could not yet afford to purchase their own home, while almost 30% felt that being encouraged by a professional (such as a financial advisor) helped to make deciding to go into investment property easier. Almost 16% in NSW stated a desire to purchase property to build a portfolio for their children (or beneficiaries), while almost 30% in South Australia stated that this was their intention.
- Out of all the states, negative gearing was the most popular with investors in Victoria, while positive gearing was the most popular investment idea in Queensland.
Other reasons for investing in property included the tax benefits as well as being considered a more sensible and lucrative options than investing in the share market. The overall impression from the survey is that the people going into the market for the first time feel comfortable looking at property as a long term investment, as something to help them secure their futures and possibly even pass down to their children as an asset. The other interesting conclusion is that people who go and talk to professionals such as financial advisors and property experts feel more comfortable with the concept of investment property and are more willing to look at it as a source of income and future wealth.
The lesson here is that if you are interested in the property market and are considering building a property portfolio, it is a good idea to find an industry expert such as Ironfish, and they will be able to guide you through all the steps of the investment process, from creating a suitable 10 to 15 year property strategy to finding investment opportunities and having them professionally managed over the long term.