Revealing look inside the minds of property investors

Tuesday, 7th Oct 2014
Categories: Newsletter


We recently conducted a detailed survey of people interested in property investment and asked them about their thoughts and opinions on the market.

Surveys like this are a regular part of our ongoing commitment to researching property-market trends and monitoring investor sentiment. And the results are always revealing.

Here are some of the key findings.

Confidence remains strong

Confidence among existing investors remains strong in the Perth property market, with many seasoned investors indicating they consider now a good time to invest.

Over 75% of people surveyed are intending to buy property over the next 12 months, and the majority of respondents indicated the current market presents plenty of great opportunities.

Despite the recent slowdown in the Perth property market, it appears existing investors still have confidence in its long-term prospects, and rightly so.

The Perth market has excellent fundamentals, with projections for strong population growth and a state with considerable economic muscle.

Existing investors who understand the long-term nature of the property cycle have indicated they are still optimistic about the market.

These investors know what they are doing and have experienced the long-term benefits of investing in property. They don’t worry about short-term market trends.

Best city for investment?

The majority of investors surveyed – 61% – indicated they consider Perth to be the best Australian city to purchase property.

Brisbane is the first choice among 21% of investors, while 8% consider Melbourne to the best city to invest in.

Type of property favoured

Furthermore, 41% of survey respondents favour buying an established house.

Regular readers of Property Wealth News will know that, as property investment advisors, we generally favour established homes over new ones. This is because established homes typically have a greater proportion of land value, providing better prospects for capital growth.

House and land packages, land only, apartments and villas are less popular choices among the investors surveyed. However, 23% are looking for a development site.

Over the past few years we’ve certainly seen an increase in the number of people interested in property development, so it’s not surprising that many people are out there looking for a project.

Investing through a self-managed superannuation fund

Wind back the clock a few years and the average investor wouldn’t know a thing about investing through a self-managed super fund (SMSF). Today, however, it’s a popular topic of conversation as people look to take more control over their financial future and obtain greater exposure to the relatively-reliable property market.

Incredibly, the prospect of investing in a self-managed superannuation fund appeals to 43% of investors we surveyed.

Most own multiple properties

The majority of investors surveyed own two to four properties, with just 16% of participants owning five or more properties.

These figures aren’t surprising given it takes considerable discipline and expertise to acquire a sizable portfolio. The key is investing in the right type of properties that will generate strong capital growth and, subsequently, help you to continue investing.

Our detailed research process shows that only 3.4% of properties meet our strict selection criteria for investment.

A busy decade ahead

One of the most satisfying points to come out of the survey is the fact that 72% of respondents plan to own more than five properties within the next ten years. And better yet, 24% are aiming to accumulate more than 11 properties.

With the right assistance and advice, hopefully these investors will achieve their goal and enjoy the long and financially-carefree retirement they deserve.