Australians are investing more of their savings into the real estate market, according to a new St. George Bank report.
The study of household financial conditions in the last financial quarter found the amount of savings being put into property lifted by almost 26 percent. This is the largest increase noted since the St. George Bank reports began in March 2001.
More than 28 percent of respondents said they would put any new savings towards real estate, compared to 27 percent who’d deposit the surplus in a bank account.
“The results show that there is a likely increase in ‘everyday mum and dad investors’ who see opportunities in the current financial climate,” Neelam Tandon, the head of retail at St. George Bank, told Money Management magazine.
It seems local households may be more interested in investing or boosting their superannuation accounts than putting money into a mortgage, as the amount of households saving to buy dropped 2.1 percentage points to 13.8 percent in the September quarter.
The report also showed that 25- to 64-year-olds had the greatest improvement in their finances in the September quarter. This improvement was probably driven by strong job creation and low mortgage rates around the country.
If you’re in this age group, investing in property is a great way to strengthen your financial position and make use of your improved circumstances. Speak to the experts at Chase Edwards today to learn how easy it is to kick start a property portfolio.