Property investors are "overwhelmingly optimistic" about the property market over the next year despite the concerns arising from the impacts of the COVID-19 outbreak, according to a joint survey by the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA).
According to the survey, seven in 10 investors are confident about the market's short-term prospects. Around four in five investors even claimed that the coronavirus outbreak has not changed their investment intentions.
Peter Koulizos, chairperson at PIPA, said the results of the survey indicate the "overwhelmingly optimistic" attitudes of property investors. Koulizos cited two reasons for investors’ positive outlook.
"It's clear that record-low interest rates, as well as the resilient nature of property during turbulent times, are inspiring investors to continue with their plans," he said.
In fact, 60% of investors said the pandemic had not made them change their investment plans over the next six months, while 30% said they are more likely to purchase a property due to impacts of the outbreak.
Still, some investors have felt the impact of the outbreak, with roughly one in three experiencing a loss of income, outside rent. Despite this, 91% of investors have yet to apply for a mortgage repayment holiday.
"Most investors also indicated that they had the financial buffers to see them through the current economic uncertainty," said Ben Kingsley, chairperson at PICA.
The survey also found that one in five tenants asked for a form of rental relief. However, landlords were not able to provide support in 15% of the cases.
"However, it's clear from the survey that landlords worked with tenants who were suffering genuine financial hardship during these difficult times, with only a very small percentage not coming to a mutual agreement," Kingsley said.
Paul Wilson, founder and CEO of Income2Wealth, said investors need to maintain their perspective and keep their heads despite the concerning headlines about the COVID-19 outbreak.
"Adopt the philosophy that this too shall pass," Wilson said in a recent interview with Your Investment Property. "This doesn't mean you should be reckless. These events can be quite serious and require diligent consideration and appropriate actions — the emphasis here being on appropriate."
Michael Yardney, director of Metropole Property Strategists, suggested a similar approach, adding that investors need to be able to take a long-term perspective when considering price projections.
"As always, while some people worry about the bad news and sit on the sidelines, strategic investors will set themselves for their future financial freedom by purchasing well-located real estate, recognising they only get a few chances in their lifetime to invest at the beginning of a new property cycle," he said.
