With property a hot topic of conversation amongst home buyers and investors, find out how they’re approaching the purchasing process today. Knowing how other buyers are approaching their next property purchase may help you work out your next move.
Recent research1 revealed that there is a strong desire to invest in property, with almost half (47%) of buyers saying they either purchased, or intend to purchase, an investment property.
Out of the remaining 53% looking to buy their next home:
nearly half (45%) are looking to upgrade
one third (33%) are looking to relocate, and
14% are looking to downsize
So what’s motivating these different property buyers? And how are they approaching their next purchase to get the most out of it?
Experienced home buyers
For buyers looking to purchase their next home, the top three motivations are:
wanting to live in a new or better area (56%)
their family is expanding (22%), and
relocating e.g. for a new job (22%).
The size (94%), location (93%) and type of property (90%) are all key considerations for these buyers. The top things they consider essential to know before buying a property are the building inspection report (55%) and comparable sales in the area (48%).
What is interesting is that many experienced home buyers (78%) think work needs to be done on their existing property to get it ready for sale, and are spending on average more than $12,300 to maximise its selling price.
Investors are more likely to be motivated by financial considerations when it comes to purchasing property, with:
more than half (54%) feeling that property is the best investment,
nearly one third (30%) wanting to take advantage of low interest rates. and
27% planning for retirement.
Key things investors consider essential to know before purchasing a property are the expected rental income (67%) and expected growth in property value of the area (51%).
The location (96%), an easy to maintain property (94%) and being close to amenities (94%) are also things investors are likely to consider important for their next purchase.
While the majority of investors are home owners looking to purchase a new investment property (65%), others are approaching investment differently:
17% are looking to turn their current property into an investment and purchase another home to live in, and
15% are currently renting and purchasing a new investment property.
Depending on the reason for your next property purchase, keep in mind that you will have different motivations and considerations shaping your purchasing decisions. It’s a good idea to speak with a lending expert to help you with the new and unfamiliar aspects of your next move.
1 The study was conducted by Lonergan Research among 1,030 Australians aged 18 and over who have bought at least one property and: have either bought a second (or subsequent) property in the last five years or, are looking to buy their second (or subsequent) property within the next 12 months. Fieldwork commenced on Friday 31 January 2014 and was completed on Monday 10 February 2014. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.
2 Refers to subsequent home buyers who have recently bought or are looking to buy a property to live in (i.e. not as an investment property).