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Investors Rush To Property During Uncertain Times

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eTradeWire -- Investors are back in the market and rushing to put their money into the relative safe haven of bricks and mortar during the COVID pandemic.

The number of investors entering the market has steadily increased in recent months following a massive drop off in May according to figures from the Australian Bureau of Statistics.

In May loan commitments to investors dropped by 15.7 per cent but that has bounced back now with the latest figures revealing a 5.2 per cent increase in loans to investors in September.

James Fitzgerald, managing director of property investment company Custodian, noticed a big jump in inquiries from investors in the past few months.

"Investors are well and truly back and keen to be buying," Mr Fitzgerald said.

"Money is cheap as interest rates are so low and because property prices appear to have withstood the COVID economic downturn, that is where investors are feeling most confident about putting their money.

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"Between April and October, we've experienced a 77 per cent increase in non-clients attending our education events compared with 2019.

"We actually did less events per month because of COVID, so it works out per event to be a 165 per cent increase in attendance."

Mr Fitzgerald said investors were getting next to no return keeping their money in the bank, so they were investigating property investment opportunities.

"The market is going through major changes and people are seeking some certainty," Mr Fitzgerald said.

"Obviously COVID and its affect on the market has been a hot topic but we've been able to show investors that the majority of markets have held their value and will continue to do so.

"In some parts of Australia, we're actually seeing rents and prices increase, at the same time the costs of owning that property are coming down. We haven't seen that kind of opportunity before."

Michelle Hele

Source: Sequel PR
Filed Under: Real Estate, Property

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