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In the wake of the global financial crisis (GFC), investors have become more realistic with their expectations, new research has shown.
Recently, Queensland-based company Place Estate Agents undertook its annual Investor Survey. According to the survey, 32 per cent of buyers said they expected a gross rental return of between five and six percent.
“Investors have become more realistic with what to expect in terms of rental yields and capital growth,” a spokesperson from Place Estate Agents wrote.
“Our analysis suggests that the purchasing demographic who responded, 90 per cent are previous property owners, are well researched and have a good feel for what is being achieved in today’s investment properties.
“Generally, investors have become more wary and educated [about] those that are spruiking improbably high returns on investment in the aftermath of the GFC.”
The survey also found that compared to 2011 and 2012, when purchasing a property for investment, more buyers are entering into the contract with the intention to hold the property long term.
“Buyers are of the understanding that substantial short-term capital growth is not expected,” the report said.
“This trend shows a deeper understanding of how the property market works and the intimate details of its cycle.”
The annual survey is designed to provide direct insight into how the investor population thinks regarding the direction of the Brisbane property market.
