ME survey shows high proportion of owners – particularly young owners – reliant on price rises to achieve their financial goals
ME survey shows high proportion of owners – particularly young owners – reliant on price rises to achieve their financial goals
39% of owner-occupiers and 47% of property investors are reliant on property prices rising, a new survey by ME bank suggests.
ME surveyed 1500 Australians on whether they wanted prices to rise or fall, and how much a change mattered. Overall 43% said they were ‘reliant’ on future house prices to achieve future life / financial goals, with 10% ‘completely reliant’.
Younger Australians are more reliant on future house prices than older, with 51% of under-39-year-olds saying they were reliant, compared to 30% of over-55s.
Australians want prices to fall
The survey also found that more Australians would benefit from property prices falling than rising, with just 28% benefit from a price rise and 47% benefitting from a fall.
“Traditionally Australians fall into two camps when it comes to property prices: owners, who want them to rise, and non-owners, who want them to fall,” noted ME home loan expert Patrick Nolan. “But with high prices disrupting the dream of home ownership and the benefits that brings, views are changing.”
“That property owners were willing to see asset values fall is a sure sign house prices had reached heights many think are unfair,” Nolan said.
ME bank’s report comes just as Sydney experiences a quarterly fall in prices, by 0.6% in the 3 months to October, according to CoreLogic. QBE’s recently released 2017-2020 Housing Outlook predicts falls in unit prices in almost every capital cities, although, outside Sydney and Darwin, house prices will increase.
Capital appreciation and investors
Investors are primarily interested in capital appreciation, a survey by the Property Investment Professionals of Australia suggests.
PIPA surveyed property investors, finding that ‘long term capital growth’ was the number one reason 64% of investors got into property. Just 28% nominated ‘long term rental income’.
Rental yields remain low – 3.5% nationally and just 2.6% in Melbourne and 2.8% in Sydney, according to CoreLogic.
However, when asked about their exit strategy by PIPA, 47% of investors said they’d ‘hold and never sell’, with 29% saying they’d ‘sell down some/all’.
39% of owner-occupiers and 47% of property investors are reliant on property prices rising, a new survey by ME bank suggests.
ME surveyed 1500 Australians on whether they wanted prices to rise or fall, and how much a change mattered. Overall 43% said they were ‘reliant’ on future house prices to achieve future life / financial goals, with 10% ‘completely reliant’.
Younger Australians are more reliant on future house prices than older, with 51% of under-39-year-olds saying they were reliant, compared to 30% of over-55s.
Australians want prices to fall
The survey also found that more Australians would benefit from property prices falling than rising, with just 28% benefit from a price rise and 47% benefitting from a fall.
“Traditionally Australians fall into two camps when it comes to property prices: owners, who want them to rise, and non-owners, who want them to fall,” noted ME home loan expert Patrick Nolan. “But with high prices disrupting the dream of home ownership and the benefits that brings, views are changing.”
“That property owners were willing to see asset values fall is a sure sign house prices had reached heights many think are unfair,” Nolan said.
ME bank’s report comes just as Sydney experiences a quarterly fall in prices, by 0.6% in the 3 months to October, according to CoreLogic. QBE’s recently released 2017-2020 Housing Outlook predicts falls in unit prices in almost every capital cities, although, outside Sydney and Darwin, house prices will increase.
Capital appreciation and investors
Investors are primarily interested in capital appreciation, a survey by the Property Investment Professionals of Australia suggests.
PIPA surveyed property investors, finding that ‘long term capital growth’ was the number one reason 64% of investors got into property. Just 28% nominated ‘long term rental income’.
Rental yields remain low – 3.5% nationally and just 2.6% in Melbourne and 2.8% in Sydney, according to CoreLogic.
However, when asked about their exit strategy by PIPA, 47% of investors said they’d ‘hold and never sell’, with 29% saying they’d ‘sell down some/all’.
