The annual Newcastle Property Activity Intentions Report produced by Rethink Newcastle Financial Planning confirms Newcastle is set for a high level of property investment in the inner city over the next twelve months. With much of the investment being funded by superannuation monies.
Local Property Activity Indicated to Increase by 130%
At a recent client event hosted by Rethink Newcastle Financial Planning, two thirds (66%) of attendees told Rethink Newcastle Financial Planning that they intend on making at least one property transaction during the next 12 months. Around the same time last year only just shy of a third (29%) of Rethink Newcastle Financial Planning clients indicated they would be making a property transaction in the next 12 months.
Strong Demand for Existing Residential Property Investments
Of the 66% of people planning on making a property transaction in the next 12 months, 25% of those transactions said to take place will be sales and 75% will be purchases. The most popular property type to purchase is existing residential investment, nearly half (46%) of the purchases are likely to be in this category. Of the intended investment purchases the second most popular property type is an off the plan purchase (26%).
Over a third (34%) of the intended residential property type purchases are indicated to be unit style property.
Inner City Newcastle is the Most Popular Location to Buy
The most popular location to buy a property in the next 12 months is inner city Newcastle (38%). When the total local area categories are combined (inner city Newcastle, anywhere in Newcastle, Lake Macquarie, Hunter Region and Central Coast) the proposed investment in the local area is nearly three quarters (74%) of all purchases.
Super Money to Fund Much of Intended Property Purchases
43% of the intended total investment purchases over the next 12 months require a loan to fund the purchase, closely followed by 37% of investment purchases using super money to fund them. Rethink Newcastle Financial Planning have already seen a significant increase in the number of new enquiries coming in for their Property Thru Super (www.propertythrusuper.com.au) service over
the last few months.
Disclaimer: This editorial provides general information only. Before making any financial decisions, consult a financial planner to take into account your individual needs.