Property investors could present an opportunity for brokers in an otherwise flat housing market, the MFAA has stated.
According to the MFAA BankWest Home Finance Index, 60.7% of home owners were likely to make their next home purchase an investment property, while only 39.3% indicated they would upgrade from their current residence. The poll also found the proportion of home owners who believe now is the best time to buy investment property increased from 74.8% in March 2010 to 76.5% in 2011. MFAA CEO Phil Naylor said the result shows opportunities exist within the investment market.
"It's good to see confidence alive and well in the property market, but you must have a borrowing strategy when interest rates are volatile. Property investors may not be aware of different strategies, but mortgage brokers understand all of the options," he commented.
Naylor said the survey also indicated that property investors were sensitive to interest rate movements, and that brokers could play a key role in helping potential investors understand the debt market.
"Given the current interest rate cycle and inflationary environment, we urge people to understand all their options before taking on more debt," Naylor said.
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