Global economic uncertainty is weighing on the minds of property investors far more than interest rate movements and real estate prices, according to a national survey by leading mortgage broker Priority Lending.
A survey of the company’s mortgage brokers which asked ‘What do you think is the main factor influencing property investors in 2012?” found 43 per cent believed the gloomy global economic outlook was the major influence.
Priority Lending Corporate Spokesman Paul Smith said only nine per cent of the 209 brokers who responded believed interest rates were a key factor for investors.
Mr Smith said 26 per cent of brokers said property prices were the main influence for investors while 22 per cent cited rental yields.
“While there’s a continual focus on interest rates, the economic situation in Europe and the potential impact it could have onAustraliais the major factor for property investors,” he said.
Mr Smith said despite investors showing concern about the debt crisis facing Europe and the United States, brokers had seen them as a growing force in the home finance market this year.
“A recent survey had found 33 per cent of our brokers believed property investors would be the major consumer group in the housing finance sector in 2012,” he said.
“Further interest rate reductions and softened property prices in recent months have been enticing investors and first time buyers, who also targeting investment properties as their entry point to the property market.”
Source: Priority Lending
