Property investor confidence remains strong: PIPA national survey

Property investor confidence remains strong: PIPA national survey
Property investor confidence remains strong: PIPA national survey

The majority of Australian property investors think now is a good time to invest in property with 70- percent of respondents to the Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey thinking so.

This figure is up five percentage points from last year.

Some 32 percent of respondents to the survey say that recent changes to lenders’ investment policies have affected their ability to secure finance, 58 percent are nonetheless looking to buy a property in next 6-12 months. 72 percent  of investors are not worried about the potential removal of negative gearing and only 2 percent think that the currently available negative gearing concessions are the key attraction of real estate investment.

Almost half (47 percent) of those surveyed  are positively geared and a majority (63 percent) of investors who are currently negatively geared expect they will become positively geared within five years.

Ben Kingsley, PIPA chair said that the survey results confirm that property investors remain focused on the long-term benefits of property investment.

“Similar to last year, most property investors are looking past short term challenges, remaining focused on the long-term wealth benefits that are available from residential real estate, including the potential for capital growth and rental income. Importantly, most investors are not speculating on quick gains in a low interest rate environment," he said.

“The survey also affirms that a lot of the discussion about negative gearing misses the mark. Most investors understand that negative gearing is only a short term cash flow position, not a property investment strategy. And only a very small minority are attracted to real estate for these tax concessions."Brisbane remains a preferred destination

PIPA’s 2016 Property Investor Sentiment Survey - Key stats at a glance

  •   1004 survey respondents

  •   71% of investors believe now is a good time to invest in property

  •   58% of investors are looking to purchase in the next 6-12 months

  •   72% of investors are not worried about possible changes to negative gearing

  •   32% of investors say changes to lenders’ policies have impacted them

  •   65% of property investors secured finance for their last deal via a mortgage broker

  •   89% of investors believe people who recommend property investment should be regulated and licensed 

Tags: 
Property market Residential Investment

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