Faced with global uncertainty and an inconsistent share market, an increasing number of Australians are turning their intention to property investment as a ‘safer’ investment strategy.
The Mortgage Choice annual NSW Consumer Sentiment Survey found that 64 per cent of the 1,000 plus respondents would prefer investing in property rather than shares.
This is a seven per cent increase since last year in the proportion of respondents who see property as a safer form of investment.
“With ongoing financial volatility here and overseas, NSW respondents are increasingly viewing property as a safer haven than shares,” Mortgage Choice acting head of corporate affairs Belinda Williamson said.
“Interestingly, one in five NSW non-mortgage holders plan to take out a mortgage in 2012, which bodes well for the property and housing finance industry.”
Investor sentiment remains strong, with more than 55 per cent of respondents looking to purchase a property over the coming months in order to “set themselves up financially for the future” – up seven per cent from last year.
In addition, 61 per cent of the respondents believe property prices will either remain stable or increase over the next year.
Interest rates were also found to influence property buying decisions, with 33 per cent saying they would be “more likely” to buy if there were more drops within the next six months.
Moreover, 66 per cent said a drop in interest rates would not affect their decision.
The Mortgage Choice 2011 Consumer Sentiment Survey was completed by 1,086 Australians after the November cash rate cut.