Latest consumer research by the Mortgage & Finance Association of Australia (MFAA - previously the MIAA) and BankWest shows residential property investors remain cautious about purchasing an investment property.
According to the research, only 9% of investors expect to buy within the next six months, and 22.7% within the next two to five years, citing economic conditions as a reason for holding back.
Thirty-seven per cent of people surveyed by the MFAA were deterred by high property prices, while only 16% said rising interest rates was the reason for their hesitation.
Phil Colton, head of broker sales at BankWest, added that the last two interest rate rises are making it difficult for some investors, but that a 0.5% rise would have more of an impact on homeowners than investors.
Although investors are cautious in the short term, the survey found 39.7% of people would like to own 10 or more properties in the future, with 77.7% hopeful that their investment property would increase and 71.7% expecting the same for rental returns.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
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