Australian Property News

Shortage of buyers to create opportunities for investors

Posted on Friday, February 11 2011 at 4:46 PM

Almost half of Australian homebuyers will delay purchasing a property in 2011, according to a recent poll by Homeloans Ltd.

That's good news for investors looking to buy this year, says Australian Property Investor deputy editor Vanessa De Groot.

"With fewer buyers in the market, there are opportunities for astute investors to capitalise on a lack of competition," she says.

"A lack of competition to buy properties up for sale means it's likely vendors will reduce their prices, so those that are looking to buy might be able to snag a property for a lower price."

"It also means investors will have more time to make their decision, so they can shop around for the best property for their portfolio."

The Homeloans Poll found that 45 per cent of buyers will put off buying a property this year due to rising interest rates and the cost of living. The results also show that one in three of those will put all major household spending – such as a new car, holiday or consumer goods – on hold for 2011.

The Homeloans Home Buyer Barometer Q1 2011 surveyed 2000 Australian first homebuyers, homeowners and investors.

Of those surveyed for the Homeloans Home Buyer Barometer, 52 per cent plan to save for a larger deposit for a property, with more than a third admitting they’ll follow a strict budget to achieve that, followed closely by cutting back on luxuries, such as eating out.