Homeowners-turned-investors are buying property in droves

93The latest research from CommBank may pique the attention of Sydney homeowners looking to secure the right tenants and maximise their rental yields from an investment property.

A massive 47 per cent of home buyers either intend to purchase or recently purchased an investment property, according to a February 27 media release from CommBank.

This could demonstrate increasing confidence in the Australian property market as areas such as Sydney and Perth see favourable growth.

A rise in capital values for houses and units during 2013 has caused many Australian couples and families to consider renting property rather than purchasing given rising costs of home ownership.

However, existing homeowners may be in a favourable position, given they can utilise their existing home equity to obtain a mortgage for an investment property and bolster their assets.

There were various motivations for purchasing an investment, with the biggest driver being property considered the best form of investment (54 per cent).

Other reasons for purchasing a home or unit as an investment include low interest rates and the desire to have a secure retirement plan.

Low interest rates made buyers consider it a “great time to be investing in property,” with 30 per cent of buyers feeling this way.

Planning for retirement was not as high a consideration, yet over one-quarter (27 per cent) of homeowners had already or were going to buy an investment property for this reason.

With self managed super funds allowing for an investment property purchase, Australians can both increase their assets while securing a sound financial future by buying property in areas of high capital growth, such as Sydney.

While 90 per cent of those buying their own property sought  a low maintenance home or one that required little upkeep, those in the investor category considered factors such as proximity from amenities and the value of loan repayments.

When buying an investment property, it pays to consider factors such as where nearby schools, restaurants and parks are as well as what public transport options are available in order to secure the right tenants.

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