Less than a quarter of property investors from New South Wales and Victoria believe now is a good time to buy an investment property in their respective capital cities, according to a new report from property investment consultancy Momentum Wealth.
The nationwide survey found that although 53% of respondents aim to buy or develop an investment property in the next 12 to 24 months, a mere 23% of those polled in NSW and Victoria expressed interest in investing in their respective capital cities.
In contrast, 53% of respondents from Western Australia believe now is a good time to buy investment property in Perth, while 50% of respondents from Queensland think now is a good time to buy investment property in Brisbane.
“Analysis from our research department shows that Brisbane, Perth and Melbourne offer plenty of good opportunities for property investors,” said Damian Collins, founder and managing director of Momentum Wealth. “Brisbane for its relative affordability, Perth as it nears the bottom of a down cycle and Melbourne because the current upcycle still has some way to go in selected areas. However, Sydney remains highly overheated and we would caution anyone considering buying in this market to approach any investment there with high caution.”
Most strikingly, despite concerns over possible property price bubbles, oversupply issues (particularly in Sydney and Melbourne), and cyclical downturns, 53% of respondents’ main goal is to grow their portfolios in the near-term.
Collins remarked that such risks were always going to be present, considering the cyclical nature of property markets. Fortunately, investors can still snag themselves great purchases with adequate research.
“Successful investors who build large property portfolios understand the cyclical nature of property markets and take a long-term view when making their investment decisions,” he said. “This approach allows them to put short-term white noise into context, adapt to the prevailing conditions and continue to grow their property portfolios to reach their investment goals as soon as possible.”
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