Two thirds of Aussies want to buy investment properties in capital cities
Despite the frenzied apartment construction taking place in many Australian capital cities (leading to fears of a looming oversupply), two thirds of Aussies (69%) who want to buy investment properties want to acquire one in a capital city. This statistic was taken from a new Galaxy survey of 1,005 people nationwide on behalf of State Custodians Home Loans. In contrast, slightly more than half (54%) of Aussies who want to buy investment properties want to purchase one in regional areas.
Victorians, South Australians, and West Australians, in particular, show a strong desire to invest in capital cities. Seventy-two percent of Victorians want an investment property in Melbourne, compared to 33% who want an investment property in regional Victoria. Meanwhile, 80% of South Australians want an investment property in Adelaide, compared to 36% who want an investment property in regional South Australia. More West Australians nominated Perth (66%) followed by elsewhere in the state (31%). The figures were much closer in New South Wales. Most residents want an investment property in Sydney (51%), only slightly ahead of regional New South Wales (49%). The only state that did not favour their capital city as their first preference was Queensland. Some 56% of residents said they were more interested in regional Queensland than they were in Brisbane (50%). Joanna Pretty, general manager at State Custodians Home Loans, said it’s no surprise that capital cities are still favoured by property investors. “Metro areas have always had a strong rate of return, so although they are more expensive to buy into, they are still a good option,” she said. “However many regional areas are starting to show strong returns also, particularly as affordability decreases in the cities and people make lifestyle choices and move to regional areas. So it can be [a] more affordable option for property investors.” Overall, the survey shows that people are most comfortable investing where they live. Among those living in capital cities, 87% wanted to buy an investment property in a capital city versus 40% who wanted to buy an investment property in regional areas. For regional residents, 82% wanted to invest in regional areas versus 33% who want to invest in a capital city. Regardless of their preference, it pays for investors to consider the bigger picture. “As with any property investment strategy, the key is to research potential areas carefully and make the right decision for your budget,” she says. “While you may be more familiar with the area you live in, don’t limit yourself by not investigating other options that may be a more cost-effective option. “Even if you are buying an investment property nearby to eventually downsize to, or to pass onto family members, you need to take into consideration the property’s future growth potential,” said Pretty.
Source: Your Investment Property http://www.yourinvestmentpropertymag.com.au/news/two-thirds-of-aussies-want-to-buy-investment-properties-in-capital-cities-228362.aspx