Episode Details

What is ahead for 2018?

I will give some of my predictions at the end of the show, but first we are going to talk about this year's Property Investment Sentiment Survey.

To help discuss this I'm joined by Metropole Property Strategist Ahmad Imam because sentiment plays a big role in how the property markets perform.

2017 Property Investor Sentiment Survey

Over 2,200 Australians have taken part in this year's Property Investor Sentiment Survey run by Michael Yardney's Property Update in conjunction with Your Investment Property magazine.

Being Australia's longest-running and largest survey of Australian property investor sentiment, it showcases insights from 2,250 property investors and would be investors across the country. Running since 2011, it offers rich and vibrant insights into how property consumer trends and sentiments have changed over time.

One of the surprises is that despite our property markets moving to the next phase of the cycle and slowing down 1 in 2 investors plan to buy a property in the next 12 months.

However, they are realistic that they won't enjoy quick and massive capital growth in the near future, but they still intend to buy more property in the next year.

It's clear that property buyers are intending to remain as active as ever, despite the fact that the boom is now well and truly over in Sydney, and strong growth isn't widely anticipated in 2018.

Our survey reveals that 50% of respondents plan to buy another property in the next 12 months, and 60% believe now is a good time to buy property.

This is despite the fact that the majority of respondents (64%) believe that property prices will remain flat, or increase by less than 5%, over the next year.

It's also interesting to note where investors are planning to buy: more than half the respondents believe that Melbourne will exhibit the best capital growth over the next 5 years (52%), with Brisbane not far behind (45%)."

Their focus is on long-term capital growth, rather than an immediate equity boost, and they're looking at property that has potential to add value,

Perhaps unsurprisingly, it also reveals that many investors are feeling the impact of APRA-led lending restrictions.

"Around half of the respondents reported that the recent changes to lending policy have impacted their ability to purchase another property, while 36% say that meeting the banks stricter serviceability criteria will be their biggest stumbling block to purchasing a property," said Sarah Megginson, editor of Your Investment Property magazine.

Q1. How many investment properties do you currently have in your portfolio?

• That fact that 90% of respondents to our survey already own an investment property and more than 50% owned 3 or more properties showed that we are surveying a group of more investment savvy Australians.

Q2. What is your preferred investment strategy?

• Close to 80% of respondents had a long term view of property as a high growth asset – rather than expecting cash flow from their properties.

Q3. Is your property investment portfolio negatively geared or does it generate positive cash flow?

• Despite the vast majority of investors investing for capital growth, only 37% of investors held negatively geared properties suggesting that, over time as rents increase, negatively geared properties become neutrally geared and eventually provide cash flow.

Q4. Do you believe now is good time to invest in residential property? ​

• 61% of respondents believe now is a good time to invest despite the fact that the majority of respondents (64%) believe that property pric