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Investors targeting upper end of the market: Paul Bennion

Property investors appear to be targeting higher-end established properties to add to their portfolio, taking advantage of the softer prices since the global financial crisis, according to managing director of DEPPRO, Paul Bennion.

Noting that they had undertaken more tax depreciation schedules for expensive properties, Bennion said that a number of clients have achieved high enough equity levels in their existing portfolios to purchase the higher-end more expensive homes.

“Investors are now targeting higher priced established properties because the upper end of the property market underwent a significant market correction following the Global Financial Crisis and properties prices are therefore now very competitive in the top end of the real estate market,” said Bennion.

These investors apparently believe that the upper end of the market will rebound, delivering high rates of capital growth when the market gains further momentum, meanwhile allowing them to benefit from significant tax depreciation.

Another trend that he has been noticing is currently established investors adding more to their portfolios with additional properties.

“Typically, we have seen our long term clients who have around three or four investment properties purchasing at least one additional investment property over the last year,” he said.

This aligns with housing finance figures recently released by the Australian Bureau of Statistics that noted an uptick in investment activity.

jduke@propertyobserver.com.au

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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