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Over a quarter of the population believe now is the best time to climb the property ladder, while almost half view property as the best investment option, according to new research.
The research survey commissioned by ING – for which YouGov surveyed 2,075 Australians aged 18 and over, over August and September – found that 44 per cent believe property is the strongest investment option, while 26 per cent believe now is the best period to purchase property.
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These findings have echoed research findings from Money.com.au, which recently revealed that 42 per cent of respondents consider property to be the most lucrative long-term investment.
The survey also found that 44 per cent of all respondents and 50 per cent of Millennials feel positive about buying an investment property, citing low interest rates (32 per cent) and the prospect of lower house prices (27 per cent) as some of the key factors driving their optimism.
Furthermore, the survey found the respondents had changed their savings and spending habits to adopt to the changing economy amid the coronavirus pandemic, with 37 per cent saving more and 40 per cent spending less during COVID-19.
Commenting on the survey results, ING head of home loans, Julie-Anne Bosich said COVID-19 has driven more Australians to think more carefully about how they can invest “to take greater control of their financial future”.
“While, understandably, not everyone is in a position to use their finances to invest, our research has found that for those who are, the preferred investment choice is property, especially in the current climate where interest rates are at a record low,” Ms Bosich said.
Younger Australians have particularly been contemplating property investment, with the ING survey finding that 25 per cent of Millennials (those born between 1981 and 1996) and 23 per cent of Gen Z (those born between 1997 and 2009) said they have been saving to cover costs associated with their planned property investment.
The enthusiasm to purchase property by the younger cohort has been a recurring trend, with previous ING research stating that a third of Millennials and 77 per cent of Gen Z were eager to enter the property ladder, with both cohorts prepared to make sacrifices to own their own home.
A survey of regions across Australia revealed that Melbourne ranked first for those looking to invest in property (28 per cent), followed by Sydney (24 per cent), Brisbane (17 per cent) and the rest of NSW.
In NSW, 42 per cent of the state’s residents are also considering purchasing property outside of Sydney.
A recent ME Bank Quarterly Property Sentiment Report revealed that 60 per cent of first home buyers said they were more likely to buy property in regional areas to “save money and improve [their] lifestyle”, compared with 45 per cent of total respondents overall.
Budget and finances
The latest ING survey found that since the pandemic, 23 per cent of respondents plan to better manage their money by sticking to a budget, with 56 per cent feeling positive about achieving their short-term savings goals.å
Furthermore, COVID-19 has spurred respondents to better understand their finances, with 27 per cent saying they feel more confident about their financial knowledge now than they did before the pandemic.
[Related: Millennials prioritising home ownership]
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