According to results from Mortgage Choice’s 2016 Money Survey, only 36.3% of Australians believe global economic upheaval has negatively impacted the safety of property as an investment class.
“When the respondents were specifically asked what they would invest their money in, 38.8% said property – higher than 35.3% who would put their money in a high interest savings account,” Mortgage Choice chief executive officer John Flavell said.
“This data clearly suggests that many Australians see property as a safe bet. They want to invest their money in something that will not only hold its value over time, but potentially deliver a strong return – and they believe property will deliver on those needs,” Flavell said.
While Flavell said the property market is likely to experience some moderation in capital growth after a strong run of late, he said recent lending figure reinforce the idea of people’s positive view of property.
“Across the combined capital cities, property prices have risen 6.4% over the 12 months to April 2016. While this level of growth is down from previous years, it is still quite robust,” he said.
“And it is not just property prices that continue to rise, with the latest data from the Australian Bureau of Statistics showing 56,562 home loans were approved over the course of February 2016 – up 1.5% from the month prior.
“In total, more than $32 billion in home loans were approved over the month of February, which only reinforces the idea that the property market – for the most part - remains alive and well.
“For all of these reasons, it is no surprise to see so many Australians considering property to be a safe investment.”