Property investors snub Sydney for Brisbane real estate
Investors are snubbing houses in Sydney for Brisbane’s higher rental returns, according to a recent survey quizzing those already on the property ladder.
Property Investment Professionals of Australia (PIPA) reached out to over 1,000 property investors, and half of them expressed that Brisbane was their preferred place to buy. Only a mere 11% believed Sydney was worth it.
“Property investors are becoming more savvy. Many of them continue to look outside of our biggest property markets - Sydney and Melbourne - which are coming close to the peak of their cycles,” said PIPA Chair, Ben Kingsley.
With the current median house price in Sydney sitting at $1,021,968, according to Domain Group data, investors may be favouriting Brisbane because of its much lower median of $731,188.
“The two key reasons that Brisbane still attracts investors, in spite of concerns around over-supply, are affordability and the potential for attractive yields. Brisbane is investing in infrastructure to make the city more liveable and investors are clued on to this.”
Other findings from the survey included 72% of respondents not being concerned about potential changes to negative gearing, and only 13% seeing record low interest rates as the “key reason” to buy property right now.
Kingsley added that the majority of investors don’t speculate on quick gains, and “only a small minority” are drawn to negative gearing concessions.
When it came to refinancing habits among investors, the survey found 80% would switch lenders if they were offered an interest-only repayment period.
Whether you’re looking for a mortgage with a low interest rate, or to refinance to a cheaper home loan, visit Mozo’s hub and make it happen.
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