Aussie Still Lovin' Property
Australians' love of property just keeps growing.
According to a recent survey three quarters of respondents said they intend to purchase property in the next five years and almost 30% are looking to buy in 2011.
The annual QBE LMI mortgage report is a survey of 864 mortgage holders and people looking to get into the property market over the next five years. The study was carried out in February by market research company CoreDat.
While 63% of respondents described the market as 'overvalued' it appears there is a strong appetite for property in the short-to-medium term Australia-wide, with 74% of respondents saying they are intending to purchase property in the next five years and 29 % intending to do so by the end of 2011.
Just fewer than 60% said property will increase in price strongly over the coming three years.
While many worry the market is overvalued, there is also a fear that waiting to get into the market will ultimately be more expensive as prices continue to rise.
Seventeen per cent of respondents see property as an effective way to build wealth quickly and despite the highly publicised property market crashes in the US and UK during the GFC, only a small fraction (13%) believe that property can be a risky investment, according to the report.
Younger respondents and owner occupiers were more likely to report mortgage stress than older people - 31% of Gen Y (under 31 years of age) reported mortgage stress, versus 26% of Gen X.
More than a quarter of owner occupiers reported mortgage stress, versus 19.5% of property investors.