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Almost two thirds of Australians believe property is one of the safest investment options, according to a new survey.
Mortgage Choice’s 2016 Money Survey found that 63.7 per cent of Australians feel financial turmoil has made investing in property seem like a safe bet.
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When asked whether or not ongoing global economic turmoil had made property safer than other investments, just 36.3 per cent of the 1,030 Australians surveyed said ‘no’.
“When the respondents were specifically asked what they would invest their money in, 38.8 per cent said property – higher than 35.3 per cent who would put their money in a high-interest savings account,” Mortgage Choice chief executive officer John Flavell said.
“This data clearly suggests that many Australians see property as a safe bet,” Mr Flavell said.
“They want to invest their money in something that will not only hold its value over time, but potentially deliver a strong return – and they believe property will deliver on those needs.”
While recent data from CoreLogic shows property price growth has started to become more moderate across the capital cities in the past few months, Mr Flavell said the property market remains relatively robust.
“Across the combined capital cities, property prices have risen 6.4 per cent over the 12 months to April 2016. While this level of growth is down from previous years, it is still quite robust,” he said.
“And it is not just property prices that continue to rise, with the latest data from the Australian Bureau of Statistics showing 56,562 home loans were approved over the course of February 2016 – up 1.5 per cent from the month prior.
“In total, more than $32 billion in home loans were approved over the month of February, which only reinforces the idea that the property market – for the most part – remains alive and well.
“For all of these reasons, it is no surprise to see so many Australians considering property to be a safe investment.”
Mr Flavell said data from the Money Survey showed financial turmoil both here and abroad has served to make Australians more financially cautious, with 55.1 per cent of respondents stating that economic problems had encouraged them to ‘save more’.
“Australians are, on the whole, incredibly savvy when it comes to their finances. The vast majority want to make sure they are financially secure in the event that unforeseen circumstances arise.
“As a result, many are increasing their level of savings and/or looking for secure areas to invest their savings,” he said.
[Related: Home loan demand recovers]
