While Australia's property market is entering a slowdown in property prices, most Australians still see it as a good time to buy property. Land-based properties are more popular with investors than apartments.
Last November, "Real Estate Consulting" (Property Update) and "your Real Estate Investment Journal" (Your Investment Property Magazine) conducted a survey of readers, according to the Australian shrewd real estate company. 2250 real estate and potential investors took part in the 2017 investor sentiment survey, the largest and longest survey in Australia.
Since 2011, the survey has provided rich and dynamic observations about the intentions of real estate consumers over time. 2250 respondents were subscribers to both sites and were interested in real estate.
In terms of total household income, 3 percent earned less than A $50, 000, while 2 percent earned more than A $ two hundred and fifty thousand, but most of them earned between A $ one hundred thousand and A $ two hundred thousand.
90 per cent of the population owns at least one investment house, as follows:
Ten percent of respondents did not invest in housing;
Nineteen percent of respondents own an investment home;
Twenty percent of respondents own two investment homes;
Fifteen percent of respondents own three investment homes;
Seven percent of respondents own ten or more invested homes.
Twenty-four percent of respondents plan to buy new homes in 2018, up from 14 percent 12 months ago, possibly because some want to take advantage of existing first-time home buyers' subsidies.
Although our real estate market is entering the next cycle of slowing property prices, 61% of respondents believe this is a good time to buy real estate. 1/2 (51%) plan to buy another home over the next 12 months. Interestingly, this is roughly the same as 12 months ago (52%).
While 26 percent of respondents plan to seek advice from property strategists or consultants, we found that 25 percent of respondents would not seek advice the next time they buy a home. This is a matter of concern because although a large number of survey materials and information are available free of charge, some information cannot be obtained through the Internet and can only be known after many years of practical experience.
Melbourne is seen as the most likely state capital to grow strongly over the next five years (52%), followed by Brisbane (45%). This is the same as 12 months ago, even at a similar rate (50% in Melbourne and 45% in Brisbane).
More than 3/4 people will buy land properties, that is, stand-alone, second-floor rooms or couplets. Apartments (9%) are currently unpopular, not surprisingly, as independent housing prices in most state-run cities have risen significantly more than apartments.
Forty-two percent of investors saw the purchase of properties with the potential to renovate or rebuild to create capital gains.
About half of respondents said recent changes in lending policy had affected their ability to buy another home, while 36 percent said meeting banks' stricter lending standards would be the biggest obstacle to their home purchases.
They don't think there will be rapid and massive capital gains in the near future, but they still plan to buy more next year.
Sixty-four percent of respondents believe house prices will remain stable or rise less than 5 percent next year. It is obvious that buying an investment house is a long-term idea.
Clearly, the confidence of property investors remains strong. While the housing boom is over, strong capital growth in 2018 will not be widespread, but if the economy permits, people in a position to buy will remain active in the property market, buying another investment home or a new self-housing.
This shows that Australian real estate investors focus on long-term capital growth, not short-term rapid growth. Many people are looking for real estate with potential for value-added, rather than waiting for a revival of the property market.
