One in four borrowers intend to buy an investment property in up and coming areas in next four years: Mortgage Choice survey

Property investment intentions remain strong among Australians mortgage holders, a Mortgage Choice survey of 1,000 mortgage holders has found. 

Just over a quarter (26%) said they were considering using the equity in their homes to buy an investment property with more than half of these (56%) intending to do so within in the next two years. 

More than four out of five (83%) said they intended to buy an investment property in the next four years with intention of most being to “buy an average property in an up and coming area and hold onto the property”. 

What is your preferred investment strategy?

National

Results

To buy an average property in an up and coming area and hold onto the property

58.5%

To buy the worst property in the best street and hold onto the property

8.5%

To buy a rundown property, renovate and sell for profit

7.7%

To buy a big block of land with a small/rundown property, with aim to knock down and develop and sell for profit

7.4%

To buy a property in an up and coming holiday rental area and hold onto the property to rent out in peak seasons

5.9%

Other

12.1%

Two-thirds of respondents said tenant demand and buying in the right suburb and street were key factor when choosing an investment property

Other important considerations were locality to amenities and entertainment such as cafes and restaurants, population growth and new infrastructure being put in place. 

What are the top five factors you look for in an investment property?

National

Results

Tenant demand in that area

65.8%

In the right suburb and street

64.7%

Locality to amenities and entertainment (cafes, restaurants, etc)

52.6%

Population growth in that area

46.3%

Infrastructure going into that area

44.1%

The 1,000 mortgage holders were surveyed by Mortgage Choice as part of its inaugural Homeowner Intentions Survey. 

A quarter of those surveyed already own an investment property with 68% owning one property, 19% own two, and 13% own three or more properties. 

“It is really positive news for the property market to see a considerable chunk of homeowners weighing up the decision to purchase an investment property in the near future,” said Mortgage Choice spokesperson Belinda Williamson.

“With lenders’ interest rates on both home and investment property loans at their lowest point in recent years, it isn’t altogether surprising.”

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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