Good news for brokers – new research shows almost half of home owners recently purchased or intend to purchase an investment property too.
According to the Commonwealth Bank survey of more than 1,000 home owners, almost half (47%) recently purchased, or intend to purchase, an investment property.
Of these, 65% are home owners purchasing a new investment property, 17% will turn their current property into an investment and 15% are renters who will purchase a property solely for investment purposes.
Fifty-four percent of these new investors believe property is the best way to invest money, 30% did so to take advantage of low interest rates, and 27% did it to plan for retirement.
The key property purchasing considerations among these investors are how close a property is to amenities and the value of the home loan repayments.
This is in contrast to home buyers who say a low maintenance property is the key purchasing consideration, with 90% saying an easily maintained property, or one that requires little upkeep, is at the top of their list.
Seeking advice from lending experts is the key to a successful property purchase, Commonwealth home loans general manager Clive van Horen said.
“My tip for all prospective home buyers is to do your research, compare property prices across suburbs, and prioritise your requirements. Seeking expert advice from your home loan provider is a good place to start.”
With mixed market conditions providing a variety of opportunities for home buyers, 86% are prepared to make compromises to get their next property.
According to the research, the top four factors home buyers would be willing to compromise on are the size, the price, the location and whether a property requires little or no renovation.
The study was conducted by Lonergan Research among 1,030 Australians aged 18 and over who have bought at least one property in the last five years or are looking to buy again within the next 12 months.