Shares just shade residential property as generating best return over next 12 months: Loan Market

Nearly a third (31%) of consumers expect residential property to be the most profitable investment sector over the next 12 months, according to an online poll of 823 consumers by mortgage broker Loan Market.

Residential property was just shaded by the share market, with exactly a third (33%) of consumers expecting the greatest profit from their share portfolio.

Nearly one in 10 (9%) expected commercial property returns to be most profitable.

Reflecting ongoing caution and savings culture 17% of respondents believed they would be better off putting their money “under the mattress”, which is higher than the 10% who expect to profit the most from holding their money in cash or putting it in low-interest-earning savings accounts. 

Property outweighed shares among older Gen-Y respondents – only 27% selected shares while 31% opted for residential property.

Loan Market survey results:

Which investment sector do you believe will be the most profitable over the coming year?

  • Shares                                                33%
  • Commercial property                 9%
  • Residential property                    31%
  • Cash/Savings                                   10% 
  • Put money under the mattress 17%       

“Australians have modest expectations for the economy,” says Loan Market corporate spokesman Paul Smith. 

“With savings being a particular priority for many Australians and caution being applied to nearly every financial decision shares and property investment hold the most attractive risk/reward balance. 

“It is alarming though that almost one in five respondents to our survey believe the best place to invest their money is under the mattress. 

“There a lot of uncertainty about the economy despite Australia so far avoiding the debt crisis that has plagued Europe.”

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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