Property investment is high on New Year Resolution lists
Anyone considering purchasing investment property as a New Year resolution could be interested to find they are not alone.
In fact, according to a new survey, conducted by home loan provider Homeloans, nearly one-third of respondents stated they wish to purchase an investment property within the next year.
A further 34 per cent indicated their decision to purchase their first investment property as a resolution. Homeloans Executive Head of Marketing Will Keall said the rapid growth that was experienced across the nation acted as encouragement for these buyers.
"A combination of low rates, the housing market showing signs of life in various cities, and the stockmarket’s volatility means people are being attracted to buying residential property as an investment," said Mr Keall in a December 13 statement.
This could be great news for anyone interested in selling a house in the near future, with a number of potential investors seemingly entering the real estate market within the coming months.
Another interesting piece of information the survey uncovered was that people found property to be a far more comfortable, tangible investment avenue than shares - highlighting why it's so popular across Australia.
"A good residential investment property can provide an income-producing asset with a long term rental income stream, plus it can represent solid wealth creation through capital growth and, down the track, collateral security for further investment," said Mr Keall.
Capital gains and rental returns were also highlighted as other reasons why people preferred the stability of investment property over other types of investment. In fact, rental demand was an extremely important factor many considered when looking for property.
In fact, over two-thirds considered rental demand in the area to be one of the most important factors to look into. This is because these areas tend to be extremely active in terms of both potential tenants and other investors looking to purchase property.
However, the top feature that those surveyed were looking into when it comes to investment property was its proximity to local amenities and public transport.
These were two factors tenants are extremely interested in, so it makes sense to secure property that is located relatively close to these options. This could help to influence investment decisions for buyers in the near future.