ENP Newswire -
Release date- 27022014 - With property investment a hot topic of conversation among buyers and sellers alike, new research from CommBank reveals many home buyers want an investment opportunity from their next property purchase.
According to the survey of more than 1,000 home buyers, almost half (47 per cent) recently purchased, or intend to purchase, an investment property. Of these, 65 per cent are home owners purchasing a new investment property, nearly one in five (17 per cent) will turn their current property into an investment and 15 per cent are renters who will purchase a property solely for investment purposes.
The primary purchasing motivations among these new investors are:
'property is the best way to invest my money' (54 per cent);
'low interest rates mean it's a great time to be investing in property' (30 per cent); and
'to plan for retirement' (27 per cent).
The key property purchasing considerations among these investors are how close a property is to amenities and the value of the home loan repayments. This is in contrast to home buyers who say a low maintenance property is the key purchasing consideration, with 90 per cent stating an easy to maintain property, or one that requires little upkeep, is at the top of their list.
'Whether your purchase is for an investment opportunity, your first or next home or simply your first renovation project, getting the right advice for your purchasing needs is essential. My tip for all prospective home buyers is to do your research, compare property prices across suburbs, and prioritise your requirements. Seeking expert advice from your home loan provider is a good place to start,' said Mr
Home buyers prepared to compromise
With mixed market conditions providing a variety of opportunities for home buyers, the majority (86 per cent) are prepared to make compromises to get their next property.
According to the research, the top four factors home buyers would be willing to compromise on are:
the size (29 per cent);
the price (25 per cent);
the location (24 per cent); and
whether a property requires little or no renovation (24 per cent).
'Although it's not surprising many home buyers are prepared to compromise on their next property purchase, what's important is making the right compromises. If you have a fixed budget, consider a different suburb or type of property. Likewise, if you can afford a little more think about which location and property type is going to give the biggest bang for your buck,' added Mr
Home buyers spend to maximise sale price
While many home buyers are looking to become property investors, among those who are looking for a new home almost half are looking to upgrade (45 per cent), one third are looking to relocate (33 per cent) and 14 per cent are looking to downsize.
Although 95 per cent of home buyers say their number one consideration when purchasing a subsequent property is the sale price, unsurprisingly many of those looking for new homes are also concerned with getting the maximum price for their existing property.
More than 78 per cent of those looking to buy a new home think work needs to be done to their existing property to get it ready for a sale, spending an average of more than
Interestingly, while subsequent home buyers have experience in the home buying process, more than half (57 per cent) agree it's more stressful juggling a sale and a purchase of a property at the same time, than buying a first home.
1 The term 'home buyers' within this release refers to subsequent home buyers or all those who have bought at least one property and are looking to buy again in the next 12 months; has bought at least two properties and at least one in the past five years; has bought at least two properties and is looking to buy in the next 12 months.
Notes to editors:
Was conducted by
Fieldwork commenced on Friday
After interviewing, data was weighted to the latest population estimates sourced from the
Most Popular Stories
- Diplomatic, Financial Fix Sought for Ukraine Crisis
- 2 Million Long-term Jobless Have No Benefits
- Las Vegas Casino Wants 'Blackout Drunk' Gambler to Pony up $500,000
- Florida Insurers Reach Out to Hispanics
- Disney Lays Off 700 From Interactive Unit
- Last Call for Hispanic Health Care Signups
- Staples Closing Stores, Moving Online
- Stocks Get Green Light on Weekly Jobless Claims
- Costco Revenue Up, Profits Down in Q2
- Christie Says GOP Image Is Media's Fault