10 September 2009

Australians Back Property Investment over Shares in Archicentre Consumer Poll

Property is In and Shares are Out according to a snap consumer poll on the Archicentre website of 450 respondents conducted by Archicentre, the building advisory service of the Australian Institute of Architects.

Robert Caulfield

With the Federal Government capping the concessional threshold for superannuation contributions at $50,000 for those people aged 50+, respondents were asked where they would put their extra funds - into improving their own home, investing in a negatively geared property or into the share market.

Robert Caulfield, Managing Director of Archicentre said an overwhelming 71% of respondents chose property with 40% investing in their own home and 31% investing in a negatively geared property. Only 29% chose to invest in shares.

Mr Caulfield said with low interest rates an increasing number of people are turning to invest in their home for an improved lifestyle and capital gain, and this is driving the market interest in property.

"They are rejecting moving home which can be an expensive exercise with moving costs up to between $50,000 to $75,000 involving loan fees, agent fees, removalist fees, and excessive non productive government stamp duty costs.

"Many people are seeing their homes as the superannuation fund they can enjoy the benefits of and sell when ready, attracting no capital gains tax if the home is the principal place of residence," Mr Caulfield said.

Archicentre Consumer Poll

With superannuation capped at $50,000 would you put your extra funds into:

The renovation of your own home	40.4%
Invest in a negatively geared property	30.9%
Invest in shares	28.7%

Total votes: 450

www.archicentre.com.au

Media Enquiries:
Robert Caulfield Managing Director Archicentre (03) 9819 4577 Mobile: 0412 381 306
Ron Smith Corporate Media Communications Archicentre (03) 9818 5700 Mobile: 0417 329 201