Sophisticated investors put market back on normal trend

Before the COVID-19 pandemic, the market was on the way back to a normal trend, with growth heading towards creating a $7 trillion asset, new research has revealed.

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A recent MCG Quantity survey, conducted between January 2016 and December 2019, noted that investors are becoming more comfortable with debt as well as becoming more sophisticated.

“The report showed the property investor population is better informed than ever about the benefits and risks associated with real estate ownership,” MCG managing director Mike Mortlock said. 

According to Mr Mortlock, this was leading to a more normal state of affairs following a two-year lull in property prices. 

“Investors across the nation were tracking a defined path, and a return to these trends will indicate we’re heading back to a more normal state of affairs.”

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The report showed that the property investor population is better informed than ever about the benefits and risks associated with real estate ownership. 

“This year’s report has revealed a progression of intelligence among the cohort, an ability to flex their strategies to allow for market and economic forces, and a continued drive to build portfolios for long-term financial security,” the report found.

Mr Mortlock believes investors are now using more strategies in property to take advantage and grow their personal wealth.

“Among the many tools at the investors’ disposal is the ability to minimise tax through professionally prepared depreciation schedules. 

“Fortunately, awareness of this vital utility is growing, so savvy investors can keep more of their hard-won gains and bring the dream of retirement a little closer than might have been the case half a decade ago,” Mr Mortlock concluded.

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