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47pc of buyers looking for investment: CBA

By Staff Reporter
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Investors are growing more dominant in the property market with almost half of homebuyers purchasing or intending to purchase an investment property, according to research from a major bank.

A survey by the Commonwealth Bank of Australia (CBA) showed 47 per cent of buyers had recently purchased or were intending to purchase an investment property.

Of these, 65 per cent were homeowners purchasing an additional property.

Another 17 per cent planned to make their existing property into an investment, and 15 per cent were renting while purchasing a property for investment purposes.

Motivations for purchasing an investment varied, though most respondents appeared to have faith in property as a wealth creation tool.

A majority, around 54 per cent, reported "property is the best way to invest my money".

Another 30 per cent were motivated by low interest rates, while 27 per cent were planning for retirement.

Homebuyers and investors were also shown to have different priorities when purchasing.

According to CBA, investors believed the property's proximity to amenities was the most important consideration, as well as the value of home loan repayments.

Homebuyers, on the other hand, overwhelmingly looked for a property that was low maintenance.

CBA general manager for home loans Clive van Horen encouraged all buyers to ensure they are fully informed before buying.

"My tip for all prospective homebuyers is to do your research, compare property prices across suburbs and prioritise your requirements," he said.

"Seeking expert advice from your home loan provider is a good place to start."

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