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By Paul Bennion, Managing Director of DEPPRO Tax Depreciation
2014 is shaping up to be a ‘break out’ year for the property investment market with surveys indicating that investors plan to flood the market during the coming year.
A recent survey of 1,000 homeowners found that almost half (47%) had recently purchased, or intended to purchase, an investment property.
Of these, 65% were homeowners purchasing a new investment property, 17% said they planned to turn their current property into an investment and 15% were renters who planned to purchase a property solely for investment purposes.
The survey also found that 54% of these new investors believe property is the best way to invest money. An additional 30% said they invested in property to take advantage of low interest rates, and 27% said hey bought an investment property to plan for retirement.
Rising property prices combined with very low interest rates are driving renewed confidence in the property investment market. According to the latest figures produced by Australian Property Monitors, house prices across Australia rose by nearly 10% last year while in Sydney they surged by 15.1%.
Strong capital growth rates combined with rental returns of over 5% in many capital cities are now making buying an investment property a very attractive proposition from ordinary Australians.
In particular, with more than 50% of all their tax depreciation reports completed for baby boomers, DEPPRO is finding that baby boomers are turning to property investment as the best way to create wealth for their retirement.