And Brisbane remains the top capital city pick for investors, according to the latest national survey by the Property Investment Professionals of Australia (PIPA).
More than 70 per cent of investors surveyed think now is a good time to invest in property with 61 per cent looking to buy a property in the next six to 12 months, up from 58 per cent last year, reports Domain.
“Property investors are becoming savvier. Many of them continue to look outside of our biggest property markets of Sydney and Melbourne, which are coming close to the peak of their cycles,” said PIPA chair Ben Kingsley.
“The two key reasons that Brisbane still attracts investors are affordability and the potential for attractive yields. Brisbane is investing in infrastructure to make the city more liveable and investors are betting on this.”
The survey also showed that efforts to curb investor activity was taking some effect but was not enough to sideline most investors.
Potential negative gearing changes might spook, but not squash, investor activity given most investors considered it to be a short-term cash flow position, not an investment strategy.
While 55 per cent of investors said they would not struggle to meet principal and interest repayments should they switch from interest only loans.