Property investors have become more confident in the worth of regional markets with a new survey revealing more find it an appealing option.
The latest Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey found that 20 per cent of investors believed regional markets were the most appealing place to buy right now.
This increased from 15 per cent at the same time last year.
Most respondents to the survey believed now was a good time to invest, with the majority, 52 per cent, planning to buy in the next 6-12 months.
As approvals for interest-only and investor loans take a big tumble, property investors are fearing the worst about their prospects for new loans and refinancing – but experts remain optimistic.
The latest APRA statistics show investor home loan approvals fell by 12.4 per cent over the last year to 30 June 2018. Further, interest-only loans took a 54.9 per cent dive in the last quarter.
These results are leaving property investors concerned that the market for financing will grow continually more difficult, compounded by declining values in capital cities like Sydney and Melbourne.
ONE of Australia’s most outspoken property experts has issued a dire warning for Labor, insisting the party could “destroy the property market”.
Last week, Prime Minister Scott Morrison told news.com.au the ALP’s vow to limit negative gearing to newly built homes would actually “invite a housing market crash”.
The policy is at the core of the Labor’s housing proposals — and negative gearing policy is expected to be one of the major issues at the heart of the next federal election.
Now, property investor and author Bushy Martin has weighed into the divisive debate, claiming Labor’s plan could end up decimating our already ailing housing market.
As property managers or BDMs, your clients prefer to invest in the best-performing capital city market. But given the circumstances in the current market, this one might not be the capital city you imagined, according to one property expert and lecturer.
Speaking to REB sister publication Smart Property Investment, Peter Koulizos, chairman of the Property Investment Professionals of Australia and lecturer at TAFE SA and the University of South Australia, highlighted that Adelaide is currently the best-performing capital city market on the mainland and has great potential for future growth.
“If you were looking to buy into a market, I reckon you’ve got two options: there’s either Adelaide or Brisbane because basically everywhere else is going backwards,” the PIPA chairman said.
With the previous success of Sydney and Melbourne over the last 10 years, Mr Koulizos said that the next 10 years are unlikely to do well, while Adelaide and Brisbane are next in line to see growth. (more…)
