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Budding first time property investors looking to buy in the next two years consider tenant demand the most important factor when considering an investment, while location and proximity to amenities and entertainment were also key criteria, a survey has revealed.
“[The property’s] suitability for renting out easily is a clear winner over easy short-term capital growth,” said Mortgage Choice spokesperson Kristy Sheppard, following the release of its 2011 First Time Property Investors Survey. “The focus is getting tenants into a well-located property in a popular area with solid growth prospects.”
The survey also found smaller was better, with 44 per cent of respondents stating they were looking to purchase a one to three bedroom house, while 19 per cent were looking to purchase a one to two bedroom apartment as their first investment.
Almost one in five respondents said they would be making their first property purchase, and would be doing so with a view to setting themselves up financially for the future, Mortgage Choice said. Just 23 per cent of respondents were planning to make the purchase on their own, and 18 per cent were eager to make their purchase the first of many.
Ms Sheppard said the majority of first time property investors are making the right choices and looking for a long-term investment.
“The findings show these novice investment buyers to be almost the opposite. They are making educated choices based on a long term commitment to their property cause and are thinking with their heads rather than hearts. All are vital attributes of a successful investor.”