IPIN Investor Trends Reveal Market Truths

Headlines and media gloom strongly suggest that consumer confidence in real estate is at an all-time low. However, alarmist hype aside, latest statistics on investor trends released by the International Property Investment Network (IPIN) proves the plain facts: investors are still buying and confidence rides high within the world’s more profitable markets.

With membership topping 20,000, IPIN (the International Property Investment Network)produces data on its members’ investor trends via its respected web-based platform and today it shows that over half those interested in investment property are newcomers to the world of property investment.   In the wake of the “Credit Crunch”, consumers are not dissuaded; in fact, the concept of building a four, five or even six-figure monthly income for life by investing in high yielding investment property continues to sow a seed in speculators’ minds as an alternative means to make good money.  Some avid investors now realize that, as access to the property market becomes more complicated for many, rental demand increases, generating sound returns for buy-to-let investors. 
Interestingly over 80% of IPIN’s members had no specific location in mind - a reflection that in today’s market, consumers are more driven by investment profits than personal preference or emotions.   That said, a surprising 24% of IPIN members are still more interested in purchasing property to live in, sitting back to let their property appreciate in value over time. 

The IPIN study showed only data collected from new members, most of whom had a low to mid tolerance to risk.  Amongst the preferred investment strategies was the buy-to-let option, with 37% of members choosing such an investment. This strategy, though not for all, allows investors to generate rental returns from property while generating capital appreciation in the meanwhile. At the time of resale, not only does the investor cover or subsidize mortgage installments with the profit from rent, but he/she will own a property worth, perhaps, 150% more than when it was first bought. This strategy is particularly efficient when buying off-plan property, preferably at pre-release prices, as capital appreciation will be at its greatest.

Statistics also reveal that England and Spain are favored investment locations. The two countries were preferred by 8% and 6% accordingly, with the USA not far behind with 5% of those polled interested in investing in the area.

Click here to view our property investment trends statistics.

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