Despite consumer concerns over interest rates, the proportion of investors planning to purchase direct property in the next 12 months has dropped only slightly from 34.8 per cent in 2004 to 31.5 per cent in a recent survey.
More than two-thirds of 799 consumers surveyed expected interest rates to rise in the first quarter of 2006, but this did not dissuade them from property ownership, with just over one fifth intending to buy an investment property and 10.8 per cent planning to get into the market as an owner occupier in 2006.
Of those planning to invest in property, 15.8 per cent indicated they would also invest in shares, which proved a popular option for respondents with almost 40 per cent planning to invest in shares in 2006, compared with 31.2 per cent last year.
The independent online survey conducted for Mortgage Choice also found shares would be purchased as an alternative investment to property by 12.8 per cent, while 11.3 per cent said they would invest in shares as both an additional and an alternative investment to property.
The removal of the vendor tax in New South Wales had influenced the decisions of a small number of potential investors, with 11.2 percent saying they planned to buy in New South Wales as a result of the changes.
Mortgage Choice spokesman Warren O’Rourke told Money Management that in the current climate, borrowers should consider property investment as a long-term strategy especially with housing price growth slowing.
“For the long term, there are many Australian regions where good gains can be made if buyers fully research the strengths and weaknesses involved,” he said.
