The latest Property Sentiment Survey from Momentum Wealth highlights that beginner investors are heading into the property market without a clear roadmap to follow.
New research by leading Western Australian property advisory group Momentum Wealth, confirms that one in two new property investors are entering the market without a formal plan to guide their investment decisions.
Momentum's 2022 Property Sentiment Survey, based on the responses of 780 investors nationally, highlights that property remains a popular investment choice. One in four (25%) survey respondents plan to buy an investment property within the next 12 months.
WA is proving a hot spot for investors, with lending data from the Australian Bureau of Statistics revealing WA to be one of the few states that has experienced continuous growth in housing finance to investors since the start of 2022.
New investment housing finance in WA for May 2022 totalled $0.74 billion, up from $0.48 billion in May 2021, according to figures from the Australian Bureau of Statistics.
However, Momentum's survey results confirm that one in three (33%) investors are entering the market without a clear blueprint to follow, rising to 52% of investors with one property in their portfolio.
Mr Damian Collins, Managing Director of Momentum Wealth, said, "In the current Perth property market we are seeing considerable interest among investors, particularly those based in the eastern states, who are attracted to the value and growth potential of the Perth market. It is a concern that one in two beginner investors are entering the market without a formal strategy in place.
"As an investor, property selection should not just be price-driven. Different properties and locations will each deliver differing results in terms of cash flow versus capital growth. This makes it critical for investors to understand what they are aiming for in a property investment, and plan accordingly.
"For first-time investors, planning is especially crucial as it ensures an informed purchase decision at the start of the property journey, and provides a solid launch-pad
