Home Loan Repayment

Struggling first homebuyers may find it even harder to break into the property market next year as more investors plan to put their money back in the sector, a new study has found.

Mortgage Choice revealed that almost half (44%) of respondents across the country intend to invest in property in the next 12 months, buoyed by rising property prices and improving yields.

Investors' sentiment in NSW rose sharply, with 45% planning to invest - a significant increase from last year's 32%. Victorians were the most bullish, boosted by the red-hot Melbourne market. About 47% of the respondents said they are likely to invest, while Tasmanians were the least likely at 36%.

While the desire to invest in property is strong amongst property buyers in NSW, about 90% admitted to making sacrifices in order to do so. This includes buying less expensive property than desired (10%), purchasing in a non-ideal location (7%) and spending less (29%).

The report also found that a large number of Australians (45%) are choosing to renovate an existing property as an alternative to purchasing a new one; though this means that 55% of those who already own a property are planning to purchase again in 2008.

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