We found that property investors are more inclined to support foreign. Investment in the real estate market than those without such investments. This was based on a survey of Sydneysiders about their views about foreign real-estate investment. It is surprising that potential buyers who may be concerned about rising. Prices were more supportive than those not interested in buying a property.
We previously reported that more than 60% of Sydneysiders don’t want any additional foreign investment in residential property in Sydney. In this context, almost 900 Sydney residents were survey to determine the relationship between home ownership. Real property investment, stress around housing, and opinions about foreign investment. Our analysis shows:
Foreign investment is more favourable for those who have property-market investments than those who do not. If you compare those in housing stress with those not. There is no difference in their beliefs about foreign real property investment.
Views Of Property Investors
We are aware that rising house prices, Generation Rent, and foreign real property investment have created the social conditions that can increase cultural tension between local and foreign buyers. Local real estate investors are a group that is keen to invest in Sydney’s real property market. We were curious to see if those who have investment properties differed from those without.
We found that those who have investment properties are more likely to support foreign investment in Sydney’s residential market than those who don’t. 29% of investment property owners agree that foreign investors should allow to purchase properties in Sydney, compare with 17% who do not own investment properties. The 32% who were owners of investment property support foreign students buying properties in Australia while they study, compared with 19% for those without.
The government’s regulation on foreign investment was a more popular topic with property investors than it was for those without investment properties. 28% of them agree that it had effective regulate.
Views Of House Hunters Property
Greater Sydney’s house prices have risen rapidly in the past decade, and so has household debt. People who are looking to purchase a property might be concern about foreign investment in real estate, as they may feel that they are being priced out by foreign buyers.
We asked participants to complete a survey asking if they were actively seeking out a property. 23% of respondents said that they were. This group agreed with 31% that foreign investors should have the right to purchase properties in Sydney. That compares to 15% who are not interested.
Views of Housing-Stressed Households
Rising mortgage and rental prices are leading causes of discontent in Sydney. Although the exact measures of housing stress are not known, they can be used to provide a comparison value for how difficult it is for households to pay their housing costs. Common benchmarks for housing stress are a ratio of housing costs and income above 30%.
This measure revealed that 52 percent of respondents were experiencing housing stress. Another 33% of respondents spent less than 30% on housing, while 15% said they didn’t know.
We found no significant differences between those who have exceeded the 30% threshold and those who spend less on housing.
Other Causes Of Concern
We found that those involved in local real estate markets are still concerned about foreign investments in general. Our findings indicate that there may be cultural or other factors at play in discontent with foreign investors in Sydney, even if housing stress levels are not associated with different attitudes towards foreign investment.
We need to find out more about how Sydneysiders view being active in the property market as it relates to the rights of foreign investors to use real-estate as a means to grow capital.
Some Sydneysiders might see foreign buyers driving up housing values as a positive. They might be concerned that foreign investors could restrict their access to the property market, which might lead them to fear depressing their assets.
This type of shared commitment to real property investment could be a strong. Argument for treating real estate as an international asset class. While cultural tensions between local and foreign investors would remain at the local level.