Ensure you never miss an issue of the
real estate business bulletin
Half of home purchases from investors

Half of home purchases from investors

by Staff Reporter 0 comments

Investors are growing more dominant in the property market with almost half of homebuyers purchasing or intending to purchase an investment property, according to research from a major bank.

A survey by the Commonwealth Bank of Australia (CBA) showed 47 per cent of buyers had recently purchased or were intending to purchase an investment property.

Of these, 65 per cent were homeowners purchasing an additional property.

Another 17 per cent planned to make their existing property into an investment, and 15 per cent were renting while purchasing a property for investment purposes.

Motivations for purchasing an investment varied, though most respondents appeared to have faith in property as a wealth creation tool.

A majority, around 54 per cent, reported "property is the best way to invest my money".

Another 30 per cent were motivated by low interest rates, while 27 per cent were planning for retirement.

Homebuyers and investors were also shown to have different priorities when purchasing.

According to CBA, investors believed the property's proximity to amenities was the most important consideration, as well as the value of home loan repayments.

Homebuyers, on the other hand, overwhelmingly looked for a property that was low maintenance.

CBA general manager for home loans Clive van Horen encouraged all buyers to ensure they are fully informed before buying.

"My tip for all prospective homebuyers is to do your research, compare property prices across suburbs and prioritise your requirements," he said.

"Seeking expert advice from your home loan provider is a good place to start."

Half of home purchases from investors
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?