Investment in Australian real estate is proving more popular than other financial options, according to a new survey.
The Genworth Homebuyer Confidence Index found that the proportion of real estate buyers who view property investment as favourable sits at 44 per cent. This is compared to 32 per cent of people who view cash as a positive fiscal move, while just 23 per cent of respondents think the sharemarket is a wise choice.
Lower property prices, higher rental rates and reduced interest rates are all solidifying the perception that residential real estate represents stability and growth.
The top reason for investing in real estate was to plan out a retirement, while the second most popular reason was because the respondent was in a financial position to make the move.
One homebuyer's response summarised the views of real estate, saying "bricks and mortar - security plus growth".
More than half of respondents said they would invest in their local area, while 42 per cent of people said they would buy an investment property in the same state, but a different region to where they live.
The demand for investment properties was also shown in recent Australian Bureau of Statistics data, which suggested that between September 2012 and January 2013, investment lending grew by 4.4 per cent.
