The majority of Australian investors (71%) had to make sacrifices, sometimes significant ones, to their lifestyle in order to afford property, according to Mortgage Choice’s latest Investor Survey.
“This is the third year in a row that we have seen a rise in the proportion of Australian investors saying they have been forced to make lifestyle sacrifices in order to buy property,” said John Flavell, CEO of Mortgage Choice.
“In 2016, 69.4% of investors said they made lifestyle sacrifices in order to afford their investment property, while in 2015, 68.1% of investors said they did the same. Of course, when you consider that most property markets have seen a jump in property values over the last few years, I am not surprised to see that more and more investors are having to sacrifice elements of their lifestyle in order to make their property purchasing goals a reality,” Flavell said.
When asked what lifestyle aspects they had to sacrifice, the survey found that the majority of investors had to reduce their daily expenses in order to afford their investment property.
“Our research found that 78.1% of investors said they had to cut back on day-to-day spending,” Flavell said. “Meanwhile, 54% of investors said they chose not to take a holiday, while 38.7% delayed their decision to purchase a vehicle. It is clear from the data that investors are savvy and they know [that in order] to make their property ownership goals a reality, they need to make changes to their lifestyle.”
Flavell added that there were plenty of opportunities in the market for people who want to purchase investment property.
“If you have been thinking about purchasing a property but have been sitting on the fence due to uncertainty in the market, the reality is now is a good time to jump onto the ladder,” Flavell said. “Interest rates remain at historic lows. And despite the recent spate of changes in the investment lending space, there are still plenty of lenders who are happy and hungry to write investment loans.”
“That said, if you are thinking of buying an investment property in the not too distant future, it pays to do your research and speak with a professional. A broker will assess your current financial circumstances and source the best home loan for your needs. They can also source you a loan pre-approval that gives you a clear indication of what you can afford to buy and what your monthly repayments will be.”
Related Stories:
