Small houses trump apartments when it comes to investment property preferences, according to the Mortgage Choice 2013 First Time Property Investors Survey.
When comparing the type of property preferences of first time investors looking to purchase in the next two years, small houses with one to three bedrooms came in as the clear favourite, at almost half (46%) of all respondents. Interestingly, there was a significant gap between the top preference and remaining choices, with small apartments with one to two bedrooms ranked second at 21%, and rounding out the top three was large houses with four or more bedrooms, at 16%.
“It is not surprising investment strategies are as diverse and individual as the investors themselves. Nonetheless, there are definite similarities when it comes to choices and preferences around property investment,” says Mortgage Choice spokesperson, Belinda Williamson.
Top five factors buyers look for in a property
Regardless of the property type, the top five factors that influenced respondents’ choice for an investment property were:
In the right suburb and street (62%);
Tenant demand in that area (61%);
Locality to amenities and entertainment (55%);
Population growth in that area (47%); and
If the property needs any repairs, renovations or regular maintenance (45%).
“It is clear from our survey results that property investors who do their homework understand the kinds of factors to take into account in order for their property investment to pay off,” says Williamson.