Investors respond to new challenges

Investors respond to new challenges

By Staff Reporter

While investor sentiment remains high, a new report has highlighted how recent changes to lending policies and ongoing market speculation may be starting to have an impact.

Twenty per cent of investors have been put off by concerns of a property bubble, but the majority remain optimistic about their investment plans, according to the 2015 Property Investor Sentiment Survey.

The survey of more than 1,000 property investors, run by Property Investment Professionals of Australia (PIPA), found that 63 per cent of respondents believe that now is a good time to invest.

Sixty per cent of those surveyed indicated their intention to invest within the next six to 12 months, while 49 per cent reported buying an investment property within the last year.

A significant number of respondents believe they are suffering as a result of the recent lending crackdown, however, with 32 per cent reporting that changes to lending policies have affected their ability to secure finance for an investment.

Brisbane was designated the state capital offering the best prospects, with 58 per cent of investors nominating it.

Metropolitan markets were tipped over regional investment locations by 74 per cent of respondents.

Explaining the results, PIPA chair Ben Kingsley stated that the majority of investors are able to see beyond the short-term impact of negative changes.

“Property investors are looking past the noise and remaining focused on the long-term investment rewards that well-selected property can deliver,” he said.

“While Sydney’s housing market has become overheated, savvy investors know there are plenty of markets outside of Sydney where there are still opportunities to be found. And with interest rates still low by historical standards, it is still a good time to invest in the housing market, if you’re doing your due diligence and seeking advice from professionals.”

Read more: 

Price growth to decline by up to 15% 

Is it time to change negative gearing? 

Higher or lower - can you guess the price? 

Lending crackdown increasing investor risk 

Has the economic downturn in WA been overplayed? 

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