Victorians ignoring home purchase woes
19 September 2007
More than half of all Victorians believe the time is right to invest in property, despite the state's housing affordability woes, research shows.
A survey by Australian insurer GIO reveals that while the younger generation is undecided, 56 per cent of people aged over 35 are more confident about the investment market.
GIO said Victorians were increasingly convinced that buying into bricks and mortar would secure their financial future, while a tightening of the market was also good news for investors seeking strong returns.
Seventy-nine per cent of those confident about the market would buy an investment property to make the most of high rental prices.
The insurer said that while many still saw good times ahead, investors would be wise to use the extra rental income to guarantee they were covered with the appropriate insurance.
"Without proper investor insurance on their property assets, one bad tenant or one unforeseen accident at the property could have serious implications for an investor's financial future," GIO's Head of Personal Insurance Lyndell Fraser said.
"Property investment may be one of the most expensive investments you ever make, so it is important to minimise your risks from the outset."
The results were compiled from a survey of 1,100 people nationally, with approximately 300 respondents from Victoria.