Property Investors see light at the end of the tunnel
Residential property investors believe the housing market is nearing the bottom, according to the latest property investor survey run by Mike Pero Mortgages and Landlords.co.nz.
Wednesday, July 15th 2009, 12:00AM
by The Landlord
A survey of more than 550 property investors found, however, that while investors believe the market is nearing the low point in its fall, they aren't rushing out to buy property.
"It appears property investors are sitting on the sidelines at the moment," says Mike Pero Mortgages Chief Executive Shaun Riley
The percentage of investors who plan to buy another property in the next three months has fallen from 12.1% to 4.5%.
According to the latest survey results, the perception of where house prices are heading has changed since the previous survey three months ago.
"In the latest survey, 38.2% of respondents expect prices to fall in the next six months compared to 58.2% in the previous survey. Just over half (50.1%) expect house prices to increase, compared to 35.8% in May," says Shaun Riley.
A large majority of survey respondents (70.6%) say that falling interest rates are making property investment more attractive.
"Our previous survey highlighted that bank lending practices were holding the market back by requiring 20% equity in a deal before they were prepared to offer finance. But this type of comment was far less pronounced in the latest survey," he says.
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