Call 1300 805 221or

More Australian investors sacrificing lifestyle to buy property

September 16, 2017

New research shows that more Australian investors are choosing to sacrifice their lifestyle in order to buy properties.

According to Mortgage Choice’s Investor Survey, 71 per cent of property investors had to make lifestyle sacrifices so they could buy residential properties, up from 69.4 per cent last year and 68.1 per cent in 2015.

“Our research found that 78.1 per cent of investors said they had to cut back on day-to-day spending,” Mortgage Choice CEO John Flavell elaborated.

Meanwhile, 54 per cent of investors said they chose not to take a holiday, while 38.7 per cent delayed their decision to purchase a vehicle.

“It is clear from the data that investors are savvy, and they know to make their property ownership goals a reality, they need to make changes to their lifestyle.”

The fact that investors, who are generally more affluent than owner-occupiers, are increasingly having to tighten their belts comes amid rapidly escalating house prices.

According to CoreLogic figures, property values across the combined capitals rose by 9.6 per cent in the 2017 financial year alone, up from a growth rate of 8.3 per cent in FY16.

Indeed, CoreLogic has confirmed that in every year since the 1997 financial year, combined capital city dwelling values have grown (excepting FY11 when they fell by 1.4 per cent, and FY12 when they saw a 3.6 per cent drop).

However, Mr Flavell said that there were still plenty of opportunities in the market for anyone wanting to purchase an investment property.

“If you have been thinking about purchasing a property but have been sitting on the fence due to uncertainty in the market, the reality is now is a good time to jump onto the ladder,” he said.

“Interest rates remain at historic lows. And despite the recent spate of changes in the investment lending space, there are still plenty of lenders who are happy and hungry to write investment loans.

“That said, if you are thinking of buying an investment property in the not too distant future, it pays to do your research and speak with a professional.”

Mr Flavell highlighted that a mortgage broker can help investors in this process as they can “assess your current financial circumstances and source the best home loan for your needs [and] source a loan pre-approval that gives you a clear indication of what you can afford to buy and what your monthly repayments will be”.

originally published theadviser.com.au

 

Related article https://www.betterchoice.net.au/property-investing-smsf/

Tags: , , , , , , , ,


Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.
Get Connected