Property investor sentiment remains upbeat despite the tightening of lending by banks, and housing bubble fears, according to a survey.
The Property Investment Professionals of Australia’s (PIPA) “2015 Property Investor Sentiment Survey”, found 63 per cent of investors believe now is a good time to invest in property and 60 per cent are looking to purchase a property in the next six to 12 months.
Only 20 per cent were concerned over a property bubble and cause them to put their property investment plans on hold.
PIPA chair, Ben Kingsley, said investors were looking past the noise and remained focused on the long term investment rewards that well-selected property can deliver.
“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,” he said.
“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.”
The report found 32 per cent of investors were impacted on their ability to secure finance for an investment property on the back of the changes to lenders’ policies.
The tightening of lending by banks was the top concern for investors, followed closely by correction in property prices, or a possible removal of negative gearing.
The survey found 67 per cent of property investors believe Australia needs a more comprehensive education program for property investment, and 91 per cent believe people who recommend property investment should be regulated and licensed.
“Unlike other asset classes, property is not classified as a financial product by ASIC [Australian Securities and Investments Commission] and the provision of property investment advice remains unregulated,” Kingsley said.
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Money Management, 28 October 2015, by Jassmyn Goh