Property investors choose old over new

24 June 2016
| By Anonymous (not verified) |
image
image
expand image

Property investors are increasingly hunting for established dwellings, rather than new builds, with 76.7 per cent of Australians purchasing an established investment property, according to Mortgage Choice.

Mortgage Choice chief executive, John Flavell, said that was an increase from 2015, when 75.8 per cent of investors purchased an existing property.

Despite the increased amount of new apartment blocks on the market, investors were increasingly opting to buy an older property, he said.

"Investors are savy, they aren't looking to lose money on their investment. They want to invest in a property that has the potential to deliver strong capital growth and rental yields," he said.

The publicly listed mortgage broking firm said that the majority of investors (71 per cent) also wanted to buy a house with at least two bedrooms.

That was why both sides of the government needed to complete a thorough analysis on how restricting negative gearing to solely new properties would hurt both potential and existing property investors.

"Negative gearing plays an important role in the property market. The tax benefits associated with negative gearing help make property investment more attractive to some Australians," Flavell said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago