Property investors turn away from disaster zones

By |

The number of property investors considering buying property in the areas that have been affected by natural disasters has more than halved.

A new report by insurer QBE has revealed that, before the spate of natural disasters hit at the beginning of the year, property investors made up 71% of respondents considering buying properties in the areas subsequently affected. Post-disaster, the proportion of investors still interested in buying had fallen to 32%.

Overall, out of the respondents who would have considered purchasing property in these affected areas, more than half say the disasters have not impacted on their intentions, while 40% are no longer considering buying property in these areas or are considerably less likely to do so.

The QBE report also revealed rising concern over interest rates, with over a quarter of respondents saying they considered themselves to be under mortgage stress – although only 2.3% said they are unable to meet repayments. The story could be different if and when rates rise, however: a 0.25% rate rise would leave 11% of current mortgage holders unable to pay their mortgage and an increase of 0.5% from current levels would see 23% default on payments.

“The leading states for mortgage stress are South Australia/Northern Territory and Western Australia with both groups having around 30% of respondents claiming to be under mortgage stress," said QBE CEO Ian Graham. "Queensland follows with 28% of respondents, ahead of New South Wales/Australian Capital Territory with 25% of respondents.

"Interestingly, respondents from Victoria/Tasmania report a level of mortgage stress well below the rest of the nation at only 15%," he added.

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

Top Suburbs : scarborough , queens park , berala , mayfield , narara

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here