A new survey has found that, when it comes to finding the best property, investors overwhelming look for areas with the best tenant demand above any other factor.
Sixty-six per cent of respondents from Mortgage Choice’s 2013 Homeowner Intentions Survey pointed to tenant demand as the main consideration for choosing an investment property.
However, explained Mortgage Choice’s head of corporate affairs, Belinda Williamson, “almost the same number – 65 per cent – said they wanted an investment property in the right suburb and street”.
The other three factors that buyers commonly look for include the locality in relation to amenities and entertainment, with 53 per cent picking this option, population growth, chosen by 46 per cent as an important factor, and upcoming infrastructure, represented by 44 per cent.
Interestingly, of the investment strategies listed, 58.5 per cent chose 'To buy an average property in an up-and-coming area and hold onto the property'.
'To buy the worst property in the best street and hold onto the property', the second most popular option, received just 8.5 per cent of votes.
Those looking to buy a rundown property to renovate clocked in 7.7 per cent, while those looking to conduct a knockdown/develop gained 7.4 per cent of respondents. Holiday rental investors came in at just 5.9 per cent, while a further 12.1 per cent chose ‘Other’.
"If you need help refining your investment strategy, a professional adviser is a great place to start. The same goes for home or investment property loans. Assessing the pros and cons of the different loan options can be a daunting task, so don't hesitate to ask for help from a professional mortgage broker,” said Ms Williamson.
Overall, investment is still an attractive option, with 26 per cent of homeowners looking to buy an investment property – and more than half of these noting that they intend to make this purchase within the next two years.
The Mortgage Choice survey asked over 1,000 mortgage holders about their intentions for the next few years.