GLIMPSE OF INVESTORS’ PET HATES
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.