PropertyTalk.com Survey Results!

[Marc]

Hello all,

Here is the link to the first ever PT survey results! Click here.

I have created this thread so we can talk about the results in one area.

Cheers

marc

[Keys]

Hello all,

The results of the first ever PropertyTalk.com survey will be released tomorrow (3 December 08 ).

I have created this thread so we can talk about the results in one area.

Cheers

marc

BUGGAR!

Missed it again!

[spritzer]

Did see the answer to "what is your favourite seminar/event?"

I was a wee bit surprised.

Cheers,

[jporteous]

40% to buy in next 6 months

Hi

Interested to note that 40% answered yes to "Do you think you will purchase an(other) investment property between now and June 2009?"

With interest rates potentially dropping faster and lower than expected would be interesting to see if this number would increase?

Jono

[Glen]

I was surprised that only 3.3% of people had more than 15 properties.

Thats not a lot for 20+ years investing,....I would've thought this number would've been higher.

[muppet]

Nope. In surveys done 5-7 years ago 90 to 91% of investors had only one or two properties.

Only 5% of investors had 5 properties or more.

[jporteous]

Why such a small number?

Hi

Why is there such a small number of investors with less than 5 properties?

Assuming they did their homework and made the step to invest in their first investment property why wouldnt the go again? Especially with the well documenting gains people have made over the longer term.

Jono

[donna]

62.2% have 5 or less rental properties. I suppose it's goes back to looking at the quality not quantity and maybe less properties has a lot to do with this statistic....over half have between 30 - 70% equity in their property portfolio - so these people could possibly have more property if they wanted to - unless they hit debt servicing issues.

Good to see this healthy share of equity amongst the investors - riding out the recession etc.

Cheers,

Donna

[jporteous]

Why not continue to grow your portfolio?

Hi

I am still puzzled why the majority of property investors do not continue to invest in property. Especially when the majority of us are investing in property to retire wealthy / stress free retirement (see survey). As you can argue that less than 5 properties is not going to be enough to support this type of lifestyle in the future?

over half have between 30 - 70% equity in their property portfolio - so these people could possibly have more property if they wanted to.:

Therefore, for the majority its not due to a lack equity.

Nope. In surveys done 5-7 years ago 90 to 91% of investors had only one or two properties.

Therefore, for the majority its not due to the wider economy.

Maybe Donna is right it is caused by a lack of cashflow or maybe its a mental barrier about the $ debt the majority of investors can handle?

Jono

[Glen]

I'm aiming for at least 30+ properties under my belt before I turn 45 (so that's another 19 in the next 7 years).
Maybe a bit too ambitous, but hey you won't make it happen by just dreaming about it and sitting on your arse!

[Perry]

Jono

Surveys are always a challenge. E.g. properties
vs rentals/tenants. On one property, I have
7 'tenancies,' with 4 presently occupied.

From the same property, I have other income
streams (2), so "number of properties" can
be misleading, though not by design.

What would be said of an investor who had one
property with 20 storage units or maybe 7 flats?

[whitt]

A good point.

I do like to keep questions the same or similar when I do a survey.
That way even if they are not completely accurate you can still monitor any trends.

[jporteous]

Hi

Thats a pretty good point Perry & Whitt. I hadn't thought of that. But from what I heard the survey results roughly reflect what is happening in the market?

I guess I am assuming with the majority of the survey people being older with long-term buy and holds that over an extended period they have grown their wealth to a reasonable extent. If that is the case what are the drivers behind stopping? Why not keep re-investing and growing that passive income?

Jono

[Perry]

That's a moot point I've covered with
others, from time-to-time. Perhaps it
could be called the moving-goalposts-
syndrome?

E.g. if a PI set a target of retiring on $NZ1k
a week, adjusted for inflation and with the
appropriate tax deductions, should they
stick to that goal? Or should they - just
when the original goal is achieved - move
the goalposts and aim for $1.5k/week?

What are the pros and cons of each option?

[rabia15]

it was good to see the survey about property...