Property

Investors Are Not Concerned About Interest Rates

According to a survey of property investors by the Loan market group – interest rate movements  pose little concern to them. Real estate investors are more interested in purchasing in the right area to achieve maximum property growth, than in the upkeep costs.

Loan Market has interviewed investors to identify what factors impact their purchasing decision and what they will consider when deciding whether to invest in property during 2011.  According to the results, 40% of investors see the house prices and capital growth as their biggest concern. Only 11% named the interest rates as the primary factor in their decision.

Loan Market chief operating officer Dean Rushton said the expectation of interest rate stability in the near term may have caused investors’ rate concerns to diminish.

Additionally just over a quarter on investors named rental returns as an issue that they consider in making the investment decision and a similar number of people saw the direction of the Australian cost of living as having a bearing on the decision to purchase an investment property.

About the author

Oliver Revilo