Long periods of rental vacancy and falling rental yields aren’t of huge concern for property investors, according to a new report. The biggest issue is finance.
The 2021 PIPA Annual Investor Sentiment Survey, which surveyed property investors across Australia, has provided a snapshot of investors’ “biggest concerns”.
About one-third of investors (34%) cited gaining access to finance as their biggest concern right now. Only 16% are fearful of a correction in property prices, while 12% say Australian economic conditions are their biggest worry.
Coronavirus and continuing lockdowns are the biggest concerns of just 9% of investors, followed by falling rental yields at 8%. Long periods of rental vacancy (7%), being ripped off by a property spruiker (7%), job security (6%), and an oversupply of new property (4%) rounded out the list.
The survey also enabled PIPA to gain a sense of the biggest motivators of property investors, asking the question of investors: “Why invest in property?”
The No.1 priority for 60% of investors is long-term capital growth. A further 28% indicated long-term rental income, as a passive form of income, as their No.1 reason.
Far fewer investors were interested in short-term price growth (4%), renovating for profit (3%), and short-term cash flow (3%).