Eight out of ten prospective property investors are unconcerned or only a little bothered by falling property prices, according to a new survey.
A survey of 1,060 first time property investors by broker Mortgage Choice has revealed that the top concerns for novice investors are the cost of living and interest rates, with most being unruffled by the current property market.
Coping with mortgage payments was also a key issue, with 84% of the already knew how much of an interest rate buffer they were going to factor into their repayment budget. Nearly 60% are able to cope with an interest rate rise of up to 2%.
When asked for their top desired property features, respondents ranked them as follows:
1. Tenant demand in the area – 58% of respondents.
2. In the right suburb and street – 57%.
3. Locality to amenities and entertainment, ie. cafes, restaurants, etc – 57%.
4. Population growth in the area – 46%.
5. Infrastructure going into the area – 44%.
The number one motivator to buy was ‘I want to set myself up financially for the future’ (82%), then ‘I see more benefit in investments such as property than in I do shares’ (57%). One-fifth of respondent would be abuying an investment property as their first-ever property purchase.
"Once we’d delved into the results, the description that came to mind for these first time property investors was logical, well-planned, long term thinkers who were determined, careful researchers and aware of their limitations," said Mortgage Choice spokesperson Kristy Sheppard.
"They are making educated choices based on a long term commitment to their property cause and are thinking with their heads rather than hearts. All are vital attributes of a successful investor."
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