One in four buyers seeking investment

ONEIN four homeowners is on the hunt to buy investment properties, new data has found.

Research by LJ Hooker Finance has shown 26 per cent of existing homeowners are looking to buy a second property and, of those, 28 per cent have owned theirownhome for three to five years.

LJ Hooker head of finance Peter Bromley says investors are nowconsidering delving into the property market.

‘‘We are seeing people really start to think about coming back to real estate investment,’’ he says.

‘‘Even Gen Ys nowlook at buying an investment property rather than an owner-occupier simply because it gives them a chance to get into the real estate market in the first step.’’

Bromley says the volatility in the share market and a combination of other factors has madenowan appealing time for investors to buy a second property.

‘‘It’s a great time. Rates are still fairly stable,’’ he says. ‘‘Vendors are looking to move on, so people looking to buy property are going to get a good deal out there.’’

Bromley says competition remains high in the mortgage industry, with plenty of home loan deals on offer.

The results were compiled from a survey of more than 1000 people and found that 42 per cent believed interest rates were a deciding factor for a home loan.

Mortgage and Finance Association of Australia chief executive Phil Naylor says potential property buyers remain cautious but now is a good time to snap up an investment property.

‘‘People are a bit reluctant to borrow money because they’re a little bit uncertain about what’s happening in the world,’’ he says.

‘‘The time is probably right in that we have seen

in some areas a fall in housing prices.’’