Aussies prefer to invest in property
AdvertisementEmail Print Normal font Large font January 9, 2009 - 12:46PM
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Australians are more confident investing in property than in shares during 2009, a survey says.
Forty per cent of respondents said their priority in 2009 is to buy property, an online survey by mortgage broker Loan Market Group revealed.
Loan Market Group executive director, John Kolenda, said measures from policymakers to boost the flagging economy and softer property prices have made the housing market more attractive for investors.
Since September, the Reserve Bank of Australia (RBA) has slashed the cash rate by three percentage points to a seven-year low 4.25 per cent.
Many market economists are forecasting the central bank to cut the cash rate to at least three per cent by June, 2009.
And the federal government's increase in the first homeowner's grant is set to stimulate the property market.
"It's (the cash rate) expected to go lower, and that is obviously encouraging to prospective property buyers," Mr Kolenda said.
"The increase in the first home owners grant to $14,000 and to $21,000 for buying or building a new home will expire on June 30 this year.
"That is also likely to have a significant impact on the property market."
The housing sector is subdued, with average house prices across the capital cities falling 1.8 per cent in the September quarter after a 0.2 per cent decline the three months before.
And new home sales fell 1.1 per cent in November, while building approvals dropped 12.8 per cent in the same month.
Only six per cent of those surveyed said they would invest in shares, following the Australian All Ordinaries index falling 43 per cent in 2008.
Mr Kolenda said a third of the survey said clearing credit card debt was their priority during 2009, Mr Kolenda said.
"There are many people who, after Christmas, have huge debts on credit cards," Mr Kolenda said.
"It is important to bear in mind that your home loan isn't the only interest rate you might be able to negotiate.
"People should check the interest rate they are paying on their card, talk to their lender or broker and see if they can get a better rate and if not, look elsewhere."
Mortgage refinancing was picked by nine per cent of respondents.
Eight per cent said they hoped to "weather" the financial downturn in 2009, while two per cent of respondents were philanthropic by donating to charity as their priority.
From The Age
AdvertisementEmail Print Normal font Large font January 9, 2009 - 12:46PM
Advertisement
Australians are more confident investing in property than in shares during 2009, a survey says.
Forty per cent of respondents said their priority in 2009 is to buy property, an online survey by mortgage broker Loan Market Group revealed.
Loan Market Group executive director, John Kolenda, said measures from policymakers to boost the flagging economy and softer property prices have made the housing market more attractive for investors.
Since September, the Reserve Bank of Australia (RBA) has slashed the cash rate by three percentage points to a seven-year low 4.25 per cent.
Many market economists are forecasting the central bank to cut the cash rate to at least three per cent by June, 2009.
And the federal government's increase in the first homeowner's grant is set to stimulate the property market.
"It's (the cash rate) expected to go lower, and that is obviously encouraging to prospective property buyers," Mr Kolenda said.
"The increase in the first home owners grant to $14,000 and to $21,000 for buying or building a new home will expire on June 30 this year.
"That is also likely to have a significant impact on the property market."
The housing sector is subdued, with average house prices across the capital cities falling 1.8 per cent in the September quarter after a 0.2 per cent decline the three months before.
And new home sales fell 1.1 per cent in November, while building approvals dropped 12.8 per cent in the same month.
Only six per cent of those surveyed said they would invest in shares, following the Australian All Ordinaries index falling 43 per cent in 2008.
Mr Kolenda said a third of the survey said clearing credit card debt was their priority during 2009, Mr Kolenda said.
"There are many people who, after Christmas, have huge debts on credit cards," Mr Kolenda said.
"It is important to bear in mind that your home loan isn't the only interest rate you might be able to negotiate.
"People should check the interest rate they are paying on their card, talk to their lender or broker and see if they can get a better rate and if not, look elsewhere."
Mortgage refinancing was picked by nine per cent of respondents.
Eight per cent said they hoped to "weather" the financial downturn in 2009, while two per cent of respondents were philanthropic by donating to charity as their priority.
From The Age
