Interest rates NOT the big issue for investors

Posted on 13/04/2007  

Stamp duty is a much greater deterrent to buying investment property than interest rates, according to the latest poll on hotspotting.com.au.

Our poll reveals 28% of those surveyed believe high buying costs such as stamp duty is the biggest issue confronting property buyers. This compares to just 9% who nominated interest rates fears as their biggest concern.

The survey results challenge popular claims that interest rates fears are scaring property investors out of the market. The survey also shows that moves to abolish stamp duty will not alone ease the concerns of property investors.

According to our poll, high prices and low affordability (34%) and low returns (29%) are the biggest deterrents to buying investment property. It shows that the affordability issue is not as simplistic as politicians would have us believe. It's a complex issue with many components - and there is no easy fix.

Affordability is the biggest issue by far in the real estate industry and the community needs an intelligent debate from our elected representatives to find solutions. But what we are getting is political points-scoring and finger-pointing, with the Federal Government blaming stamp duty and the State Governments blaming interest rates.

They are both wrong - and overall the response to this important issue from our politicians is extremely poor. It's clear nobody in government at any level, including local government, intends to do anything about this, other than blame their political opponents.

 

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