Colin and Pam - Hi Greg and Ann, Thanks for the Routine Inspection Report.We have had up to 4 properties since 2001 and have never received a report as comprehensive as this. Congratulations.The tenant is doing her part in her upkeep of the property.
New research shows that more Australian investors are choosing to sacrifice their lifestyle in order to buy properties.
According to Mortgage Choice’s Investor Survey, 71 per cent of property investors had to make lifestyle sacrifices so they could buy residential properties, up from 69.4 per cent last year and 68.1 per cent in 2015.
“Our research found that 78.1 per cent of investors said they had to cut back on day-to-day spending,” Mortgage Choice CEO John Flavell elaborated.
Meanwhile, 54 per cent of investors said they chose not to take a holiday, while 38.7 per cent delayed their decision to purchase a vehicle.
“It is clear from the data that investors are savvy, and they know to make their property ownership goals a reality, they need to make changes to their lifestyle.”
The fact that investors, who are generally more affluent than owner-occupiers, are increasingly having to tighten their belts comes amid rapidly escalating house prices.
According to CoreLogic figures, property values across the combined capitals rose by 9.6 per cent in the 2017 financial year alone, up from a growth rate of 8.3 per cent in FY16.
Indeed, CoreLogic has confirmed that in every year since the 1997 financial year, combined capital city dwelling values have grown (excepting FY11 when they fell by 1.4 per cent, and FY12 when they saw a 3.6 per cent drop).
However, Mr Flavell said that there were still plenty of opportunities in the market for anyone wanting to purchase an 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," he 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."
Mr Flavell highlighted that a mortgage broker can help investors in this process as they can "assess your current financial circumstances and source the best home loan for your needs [and] source a loan pre-approval that gives you a clear indication of what you can afford to buy and what your monthly repayments will be”.