"Property back in favour"

Hi Followers

Came across this today and thought I'd share:

Investors are starting to come out of the woods and dip back into the property market, according to CommSec’s Economic Insights report.

The latest survey shows respondents increasingly believe property is the best place to put finance, with 25 per cent of those questioned saying they’d put their money in property before savings, paying down debt or investing in the stockmarket.

This is a sharp turnaround in faith in property, up from 18 per cent of respondents saying they’d put their money in property in the previous quarter.

“No doubt the fact that interest rates are coming down, immigration is rising and new building remains weak were all aspects causing respondents to nominate property as one of the wisest places for new funds,” CommSec says.

“In other words, demand is expected to rise but the supply of homes isn’t expected to keep pace, so prices are expected to rise.”

The number of respondents claiming real estate was the best place to put finance was the highest reading in almost seven years. This compared with the lowest reading for shares in almost 20 years, with just 5.3 per cent of respondents saying they’d put their money in shares.

“The positive views on property purchases represent good news for the beleaguered housing market,”CommSec says.

“Hopefully consumers will follow through on expectations.”

This information was gathered from:
http://www.apimagazine.com.au/api-online/news/2012/06/property-back-in-favour

DEB BRADY
0405 570 903