AN 82 per cent of investors believe now is a good time to invest in property according to the 2019 PIPA Property Investor Sentiment Survey.

Nearly 60 per cent are also now considering non-bank lenders after the Banking Royal Commission.

The national annual survey, which gathered insights from nearly 1,200 property investors, also found that investors are demonstrably more positive about the market compared to the same time last year – despite slower markets in Sydney and Melbourne and a relatively tight financial environment.

The survey found that Labor’s proposed changes to negative gearing and Capital Gains Tax legislation heavily influenced the way that three-quarters of investors voted in the recent Federal Election, despite short-term tax benefits being the least important criteria in investment property selection in this year’s survey results.

“It’s clear that many investors, regardless of their political leanings, were fed up with being told they were ‘greedy’ when the vast majority only own one property and are just trying to improve their financial futures,” PIPA Chairman Peter Koulizos said.

Mr Koulizos said restricted access to lending had also meant that more investors were prepared to look further afield to secure lending.

“Difficulty obtaining finance, as well as the popularity of banks being on the slide over the past year, meant that about 60 per cent of investors are now more likely to consider a non-major bank lender, especially after the outcomes of last year’s Banking Royal Commission,” he said.

Over the past year, the survey found that 27 per cent of investors had secured a loan from a non-major bank lender with the top two reasons being cheaper interest rates and increasing borrowing power.

“Given tight lending conditions and the financial sector’s response to the Banking Royal Commission, a staggering 25 per cent of respondents have found they were unable to refinance an amount they were able to borrow previously,” Mr Koulizos said. “This is potentially one of the reasons why the number of investors in the market has fallen – with 34 per cent of investors purchasing a property over the past 12 months, down from 43 per cent in the 2018 survey.”

KEY STATS AT A GLANCE:

  1. 1,192 survey respondents
  2. 82 per cent of investors believe now is a good time to invest in property
  3. 48 per cent of investors are looking to purchase in the next six to 12 months
  4. 27 per cent of investors have secured a property loan from a non-bank lender
  5. 25 per cent have been unable to refinance

 

St George & Sutherland Shire Leader, Sydney, Page 6, 16 October 2019
Hawkesbury Gazette, Page 18, 16 October 2019
Wollondilly Advertiser, Page 14, 16 October 2019
Liverpool Champion, Page 21, 16 October 2019
Fairfield City Champion, Sydney, Page 22, 16 October 2019
Burnie Advocate, Burnie, Page 6, 17 October 2019
Hawkesbury Courier, Richmond, Page 16, 17 October 2019
Lower Hunter Star, Maitland, Page 5, 17 October 2019
Port Macquarie News, Port Macquarie, Page 8, 18 October 2019
Border Mail, Albury-Wadonga, Page 2, 19 October 2019
Warrnambool Standard, Warnambook, Page 2, 19 October 2019
Manning River Times, Taree, Page 3, 23 October 2019
South Coast Register, Nowra, Page 2, 23 October 2019
Milton Ulladulla Times, Ulladulla, Page 2, 23 October 2019
News Weekly (Merimbula), Merimbula, PAge 8, 23 October 2019
Western Advocate, Bathurst, Page 21, 31 October 2019