It may be difficult to get finance in the current environment, and consumer sentiment about property price growth is in the doldrums – but that won’t stand in the way of investors who are keen to build wealth through property.
More than half of respondents in a recent survey reported that they believe now is a good time to invest, despite the fact that the vast majority of respondents (84%) believe that property prices will fall or remain flat over the next year.
Over 1,800 Australians took part in this year’s Property Investor Sentiment Survey, run by Your Investment Property magazine in conjunction with Michael Yardney’s Property Update and onthehouse.com.au.
When asked, “Do you believe now is good time to invest in residential property?”, 52.6% said “yes”, 24.6% said “no”, and 22.8% responded that they were “unsure”.
“It’s encouraging to see that despite the current uncertain economic environment, which includes the trifecta of limited property price growth, negative gearing changes on the table, and mortgages becoming harder to get, that people are still positive about the potential of property as a whole,” said Sarah Megginson, editor, Your Investment Property magazine.
“The majority of respondents to the survey are existing property investors – more than 82% of them are already in the market – so there’s a good chance that these investors have lived through challenging market conditions before. We rebounded after the GFC, and after the mining bust; we’ll rebound again.”
Around 51.5% of respondents confirmed that they invest for long-term capital growth, adopting a long-term view of property as a high growth asset, rather than expecting cash flow from their properties.
Just 14.3% said they invested for positive cashflow in the current market.
As Australia’s longest-running and largest survey of Australian property investor sentiment, the Property Investor Sentiment Survey showcases insights from property investors and would-be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time.
You can read the full survey results here.
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