GLIMPSE OF IN­VESTORS’ PET HATES

Southern Gazette (South Perth) - - Residential -

FIRST-TIME in­vestors to­day are re­laxed, fo­cused and ready to invest, ac­cord­ing to new re­search by one of Aus­tralia’s lead­ing fi­nan­cial groups.

But there are three overused prop­erty de­scrip­tions they would pre­fer to see “out­lawed”.

The RAMS First Time In­vestor Survey 2014 has re­vealed three in four prop­erty in­vestors sur­veyed in Aus­tralia were not stressed when it came to re­search­ing for their first in­vest­ment prop­erty and were most likely to turn to on­line real es­tate web­sites for help find­ing their slice of the real es­tate pie.

Un­for­tu­nately, if buy­ers had their way, they would never want to read another house list­ing with the phrases “hot prop­erty,” “wa­ter glimpses” or “ren­o­va­tor’s dream” ever again.

RAMS chief ex­ec­u­tive Mar­tine Jager said the survey, de­signed to look at ap­petite of first-time in­vestors in Aus­tralia, sug­gested more re­al­is­tic prop­erty de­scrip­tions could be a way to at­tract more of them into the mar­ket.

“While in­vest­ing in prop­erty is not a tax­ing ex­er­cise, there are still as­pects of the search and buy­ing process that are un­ap­peal­ing to buy­ers,” Ms Jager said.

“It’s not sur­pris­ing to find that most first-time in­vestors cite ex­ag­ger­a­tions with prop­erty de­scrip­tions as their big­gest pet peeve when try­ing to find the right prop­erty to invest in.

“After all, buy­ing a prop­erty is not just a fi­nan­cial com­mit­ment – it is also a big in­vest­ment of your time, and mis­lead­ing list­ings can be dis­cour­ag­ing and frus­trat­ing.”

At the top of first-time in­vestors’ lists for a dream in­vest­ment prop­erty was an es­tab­lished, small sub­ur­ban house, fol­lowed by an es­tab­lished, small sub­ur­ban apart­ment and an es­tab­lished small apart­ment in the city cen­tre.

“At RAMS, we are find­ing that many first-time in­vestors are ac­tu­ally first-home buy­ers look­ing for an en­try point into the mar­ket,” Ms Jager said.

“For many, this means buy­ing a mod­est prop­erty in more af­ford­able sub­ur­ban ar­eas, which have a good cap­i­tal growth po­ten­tial.”

The survey also demon­strated first-time in­vestors were be­com­ing savvier and were tak­ing ad­van­tage of re­sources and ser­vices avail­able to help make in­formed de­ci­sions about how and when to invest.

It sug­gested the majority of first-time in­vestors were con­fi­dent when it came to tak- ing the ini­tial leap on to the in­vest­ment prop­erty lad­der, but one in four needed more support to kick-start their prop­erty pur­chase.

“With tools such as the free RAMS First Time In­vestor Pack, un­der­stand­ing the steps in­volved in get­ting your foot on the in­vest­ment prop­erty lad­der is easy,” Ms Jager said.

“How­ever, while th­ese tools can get you off to a good start, the most valu­able tool in the buy­ing process is still face-to-face, ex­pert ad­vice.”

Other find­ings re­vealed first-time in­vestors had con­cerns about ris­ing in­ter­est rates and their abil­ity to make re­pay­ments, as well as deal­ing with bad ten­ants.

For more in­for­ma­tion about the survey and its re­sults, visit www.rams.com.au or call 137 267.

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