Property still high on the agenda

A survey conducted by one of Australia’s peak accounting bodies has revealed that owning an investment property is still regarded as a very popular investment vehicle among most consumers.

The study conducted by the Institute of Chartered Accountants (ICAA) showed 20 per cent of respondents already had an investment property, and 29 per cent of participants would be likely to consider buying an investment property within the next 10 years.

The professional body conducted the survey in June and sought responses from over 1,100 people.

“In many ways, property is more tangible and understandable than other investments, and with many Australians having experienced their own home increase in value, an investment property is still considered an attractive investment,” explained ICAA manager for financial planning and superannuation Hugh Elvy.

In terms of narrowing likely investors down to a particular profile, the research discovered men over the age of 50 who are married and have a household income in excess of $70,000 per annum are the prime candidates for owning an investment property.

Skyrocketing property prices in New South Wales and Victoria appeared to have a significant influence on the results, with 42 per cent of Queenslanders admitting they would probably buy an investment property in the next 10 years, and 52 per cent of Tasmanians responding in the same manner.

In regard to planning ahead, participants in the 35 to 40 year old age bracket were most likely to consider buying an investment property in the coming decade, while Australians over the age of 50 and heading towards retirement were the group least likely to invest their money in this way over the same period.