Hi Property Lovers
I came across this article on Australian Property Investor that I thought had some good information:
In the face of an uncertain economy, real estate is becoming an increasingly attractive place to park savings, according to The Westpac/Melbourne Institute's Index of Consumer Sentiment for June.
The Index of Consumer Sentiment reveals that property investment now runs a close second (21.7 per cent of respondents) to bank account deposits (29.2 per cent of respondents) for consumers, a shift from three months ago when paying down debt was more desirable to consumers than bricks and mortar.
Banks are currently the number one preferred place to park money, possibly due to the attractive term deposit rates on offer, said CommSec economist Savanth Sebastian.
He said the popularity gain of property investment is most likely due to the strength in property prices, falling unemployment and a growing population.
According to the Australian Bureau of Statistics (ABS) housing finance figures for April, property investor numbers continue to gain momentum while owner-occupier numbers retreat a little further.
"The rate hikes have resulted in the demand for housing sliding (though from a very high base) however it would seem the stock of housing or new listings seem to be falling at a faster pace, a result that would justify the strength in house prices," said Sebastian.
"However there are early signs that property prices are consolidating, and CommSec expects this trend to gain traction, with the lift in housing supply coming through the pipeline over coming months," he said.
As the ABS new home loan owner-occupier figures for April revealed a 1.8 per cent slide, equal to a nine-year low, investor loans recorded a consistent upward track over the past nine months and a 26 per cent increase on its figure 12 months ago.
However, both investors and owner-occupiers are borrowing more, with ABS figures revealing an increase for the second month, with owner-occupier loan values up by 0.6 per cent and investor loan values up by 1.3 per cent.
This information was gathered from:
Thinking of buying or selling in Nedlands? Call me anytime.
It's a great time to buy I reckon!
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