Majority would access equity to invest: survey

PROPERTY


A poll released by PRDnationwide shows 61 per cent of home owners would access equity in their property to fund another investment. Twenty-three per cent of respondents said they would use equity to complete renovations, while 12 per cent would not access equity.

PRDnationwide research director Aaron Maskrey said only small numbers of home owners chose to access equity for luxury items like a holiday (1 per cent) and a new car (3 per cent). “Property investors are now feeling more wealthy and prosperous, because the Global Financial Crisis has passed in Australia and their jobs are secure, so we've got quite a lot of buoyancy in the marketplace,” said Mr Maskrey.
“According to the Australian Bureau of Statistics, the total spend on housing financial commitments compared to the previous year, has increased by 10.1 per cent from $19.2 billion.
“Investors have strengthened with $6.4 billion being committed in January, the highest amount of investor commitment since February 2008. Investors now account for 30.4 per cent of the total housing finance commitments.
“With a current nationwide shortage of homes putting upward pressure on prices once again – the idea of accessing equity is becoming more popular.”