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Australians still leaning heavily towards property.

A new survey - The 2013 Homeowner Intentions Survey, conducted by Mortgage Choice, has shown that the current low interest rate environment now has Aussie investors considering significant investment in property.

More than a quarter of homeowners are thinking about purchasing an investment property and more than half of them are keen to invest in the next two years.

Mortgage Choice head of corporate affairs Belinda Williamson said this can only be positive news for the property market.

“With lenders’ interest rates on both home and investment property loans at their lowest point in recent years, it isn’t altogether surprising.”

The survey also found that the Aussie love affair with bricks and mortar isn’t abating.

Of the 25 per cent of respondents who already owned an investment property, 68 per cent owned one property, 19 per cent owned two, and 13 per cent owned three or more.

Two thirds of respondents said their main focus was investing in an area where tenant demand was high.

The Australian Financial Review reports that property magnate Lang Walker expects a significant turn-around in the Australian property market following the next federal election.

“Hopefully we’re going to see some confidence come back into the market after the election in September," he said, according to the newspaper.

Mr Walker said there was already a slight uplift in confidence, and there was more to come –
"We see that happening after the election – that’s a very good place to be in," he said.

Australian Residential
Property Planners

Australia Number Two for Chinese buyers.

Australian cities continue to be real estate hotspots for Chinese buyers according to website Australia is the second most-searched country, while the USA heads the list.

In Australia, the top rankings are Sydney, Melbourne, the Gold Coast and Brisbane.

While there are many motivations for Chinese buyers, has discovered the four top reasons for purchasing Australian property.

Investment is a motive for 51 per cent, followed by education at 25 per cent, lifestyle 19 per cent and migration at 5 per cent. was co-founded by Queenslanders Simon Henry and Andrew Taylor.

The multi-million dollar business is collecting some of the world's first data on where Chinese buyers are looking to purchase property.

"No one has ever done this before,'' Mr Henry said.

"We are seeing hotspots all over the world.

"You'd typically expect LA, New York, San Francisco – the Hollywood-factor type cities to be really high on the agenda.

"And yes, they are there, but then there are other places which are completely unexpected: Portugal, Spain and Cyprus.''

"There's a lot of property cooling measures in China at the moment to try and stop the prices inflating too high,'' Mr Henry said.

"It has become very hard to buy a second property or an investment property in China. So a lot of people are looking to diversify their risk.''

Education is also a serious market driver with parents often purchasing a property for their children to live in while studying.

Sydney properties selling fast.

The latest RP Data Property Pulse report has revealed that, as of April, Sydney properties averaged 35 days on the market (39 for houses and 31 for units) compared to 50 days for the combined capital cities and 60 days for all of Australia.

Melbourne was close behind at 38 days and Canberra's 49-day average was the only other capital to break 50.

The research provides another example of Sydney's supply crisis, with stock being snapped up faster than homes in resource-boom cities.

"Over the past four years, residential property in Sydney has typically sold faster than the combined capital cities,'' said Tim Lawless, RP Data's national research manager.

New South Wales extends First Home Buyers Grant.

The New South Wales government has announced that it will extend the first home buyers’ grant by another two years, entitling prospective home owners to a $15,000 inducement when purchasing a new house.

State Treasurer, Mike Baird, said the scheme had seen a 60 per cent leap in grants in the first few months of 2013 compared to last year.

“As part of the Building the State package announced in last year's Budget,” says Baird, “the NSW Government more than doubled the First Home Owners Grant for new homes costing up to $650,000 to $15,000 and we are already seeing signs of life in the critical housing sector.”

The grant was due to drop to $10,000 next year, but will now be offered until 2016.

Household wealth stronger than ever.

Australian’s personal wealth has hit a record high.

Household wealth is now above its pre-global financial crisis levels at $75,955 per person, according to official data.

This is good news for Australian retailers as after years of flat spending economists expect that households will slowly start shopping again.

The Australian Bureau of Statistics data shows that net wealth has jumped considerably in the past 12 months from $73,352 to a record $75,955 per person in the March quarter.

This is mainly due to strong gains on the Australian share-market.

Despite the recent volatility on the stock market, some analysts are tipping the ASX 200 will rally strongly in the next six months to reach the 5200 point threshold by the end of the year.

The market is still down from its May 15 peak of 5220.

Mr Sebastian said while the demand for cash remains strong there are some early signs retail investors are starting to think about investing in other asset classes.

Date posted: 2013-07-02 | posted by: mydep

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