Why now is the best time to buy property
It seems the financial stress and uncertainty of 2020 has not dampened the enthusiasm of Australians to invest in property – and there are some good reasons for this.
A new survey of over 2000 Australians by ING found 44% still believe property to be a sound investment option and 26% (over a quarter) think now is the best time to enter the investment property market.
Interestingly, it is amongst millennials where this interest is strongest (50%). With record low interest rates and easing pressure on house price escalation, the desire to enter the investment market is as strong now as it has ever been for many first-time investors.
Savings and spending
The pandemic has also produced another interesting statistic that reinforces this interest in investing in property. Since March this year, many Australians have dramatically increased the amount of income they are putting aside in savings, helped of course by spending less on almost everything. The ING research puts these figures at 37% and 40%, respectively.
This combination of conscious savings and prudent spending means more and more people are starting to think about investing as a better way to protect their financial future.
Whilst it’s true the economic fallout from the pandemic has hit many people hard, those fortunate enough to have a steady, reliable income are now seriously thinking about ways to better ensure their financial security and for many, property is the most appealing.
Melbourne ranks as first choice
This interest in putting money into an investment property appears strongest in Melbourne, despite having been under the most severe restrictions due to Covid-19. Of all the states, 28% of investors are looking at Melbourne, followed by Sydney (24%), Brisbane (17%) and the rest of NSW (16%).
Australian Bureau of Statistics (ABS) data for 2020 is also interesting. Despite investment loans nationwide falling to their lowest level since 2002 in May, the statistics for August 2020 show a 9.3% monthly increase, suggesting many investors are returning to the market.
Clearly, the strong interest in property as an investment asset, combined with low interest rates and very attractive new government incentives for housing is driving demand for well-priced, accessible investment properties in the epicentre of Australian housing activity – Melbourne.
If you would like to find where the very best investment property opportunities are in Melbourne, contact Resimax Group today.