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ISCOVER
Staff Reporter
The threat of rising rates is doing little to deter potential investors from entering the property market, new research has found.
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According to a recent survey by Loan Market Group, investors are now more concerned with the direction of property prices than home loan interest rate rises.
The Loan Market online poll which asked “What factor would most influence your decision to invest in property during 2011?” found 40 per cent of respondents nominated houses prices/capital growth.
Only 11 per cent of the 801 respondents said interest rate movements would be a crucial factor in their investment decision.
“Their bigger concern is what direction property prices move in the long run,” said Loan Market chief operating officer Dean Rushton.
Mr Rushton said the likelihood of some interest rate stability for much of 2011 should still be an encouraging sign for existing and potential investors.
“Interest rate stability will bring more buyers into the market which will in turn drive market values,” he said.
Mr Rushton said the survey found 26 per cent of potential investors were influenced by rental returns, while 23 per cent said their personal cost of living considerations were the major factor in whether to pursue an investment.
