Long periods of rental vacancy and falling rental yields aren’t of huge concern for Australian property investors, according to a new report.
The 2021 PIPA Annual Investor Sentiment Survey, which surveyed almost 800 property investors across Australia, has provided an interesting snapshot of investors’ “biggest concerns”.
Survey respondents were asked the question: “What is currently the biggest concern for you as a property investor?”
Just over one-third of investors – or 34 per cent – revealed gaining access to lending as their biggest concern for right now.
A further 16 per cent are fearful of a big correction in property prices.
Just over one-in-10 property investors (12 per cent) indicated Australian economic conditions as their biggest worry.
Coronavirus and continuing lockdowns were the biggest concerns of just 9 per cent of investors, followed by falling rental yields at 8 per cent.
Long periods of rental vacancy (7 per cent), being ripped off by a property spruiker (7 per cent), job security (6 per cent), and an oversupply of new property (4 per cent) rounded out the list.
The survey also enabled PIPA to gain a sense of the biggest motivators of property investors.
It asked the question of investors: “Why invest in property?”
The number one priority for 60 per cent of investors is long-term capital growth.
A further 28 per cent of investors indicated long-term rental income – as a passive form of income – as their number one reason.
Far fewer investors were interested in short-term price growth (4 per cent), renovating for profit (3 per cent), and short-term cash flow (3 per cent).
Just 2 per cent of investors said their number one reason for investing in property was for short-term tax benefits.