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The results of an investor survey have shown the things that worry investors the most, along with the most in-demand experts investors are seeking.
The third annual Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey has provided an insight into what investors are currently doing in the property market, and how they are thinking about the future of investing.
Mortgage brokers are, by far, the most popular professionals investors go to, with 84.49 per cent of investors using their services.
Next most popular are accountants at 76.73 per cent, then lawyers and conveyancers at 69.93 per cent, property managers at 62.99 per cent, buyer’s agents and advocates at 41.5 per cent, property investment advisers at 39.59 per cent, financial planners at 35.92 per cent, property marketers and sellers at 13.88 per cent and property investment coaches at 13.47 per cent. A small minority at 3.54 per cent said they have not sought out any advice at all.
There is a surge in mortgage broker interest, with 73 per cent of investors using a mortgage broker to get their most recent loan, up from 65 per cent two years ago, and 83 per cent plan to use a mortgage broker to secure finance for their next loan, up from 71 per cent.
PIPA chair Ben Kingsley said the survey shows that more “sophisticated” investors are utilising these professionals in order to develop their portfolios.
“The restrictive lending environment for investors across the nation may have removed some of the speculation out of the market, but is also preventing some sophisticated investors from investing in their financial futures as well as adding to the supply of rental properties,” Mr Kingsley said.
“While parts of Sydney's market were saturated with investors for a moment in time, the tougher lending environment has adversely impacted other markets, such as Brisbane and , where the investment activity was tracking at historical averages or below.
“Our survey results show that rather than be defeated, educated property investors are opting to use professionals to assist them to achieve their goals – regardless of the lending environment.”
Further, 38 per cent said they have no difficulty refinancing, with 28 per cent unsure and 22 per cent having difficulty, and 30 per cent said they have or they will switch to principal and interest loans, but 36 per cent said they do not intend to switch.
There is also a sense of discontent with owner-occupiers, 68 per cent have responded that it is unfair owner-occupiers pay lower interest rates in comparison.
Out of nine different concerns, with PIPA asking respondents to rank the concerns from most to least, the issue that has worried investors the most is the further tightening of investor lending, which is ranked as the biggest concern by 32.48 per cent of investors.
Second most concerning is banks raising interest rates on investment properties, followed by a big correction in property prices, then falling rental yields, changes to negative gearing tax laws, long periods of vacancy, changes to CGT exemption laws, oversupply of new property, and being ripped off by a property spruiker coming in as the least among all concerns.