Investors still see property as a safe bet

OVER 80% of respondents in a new survey still believe property is a safer investment bet than shares.

Carried out jointly by EBS Building Society and Gunne Residential, the research also shows that 63% of property investors intend to expand their portfolios within the next five years.

The survey found 80% of respondents invested in property because they see it as "a safer option than other forms of investment."

Up to 64% expressed satisfaction with the rental income while 65% said the advantages of being a landlord outweighed any disadvantages.

Up to 200 property investors took part in the survey and of those 41% owned just a single property; 26% owning two and 22% had four or more under ownership.

In a separate survey Hamilton Osborne King said that the Irish commercial property investment market will hit 1.3 billion this year, with office market completions in 2005 double that of 2004.

In the joint survey (EBS/ Gunne) it emerges a high proportion of the investing public 73% said they were driven by the desire to provide a pension for themselves and a partner with 50% gearing their property to provide nest eggs for their children.

However property is not their sole asset class and 33% have sunk €10,000 or more into a private pension scheme and 28% in stocks and shares.

Dara Deering, head of mortgages, EBS Building Society said: "There continues to be a high level of confidence among property investors, with a high percentage saying they will purchase another property in the next five years and 90% of respondents believing that property offers better long term appreciation than other forms of investment."

It was also interesting to see that one in ten is buying elsewhere in Europe as investors search foreign markets in the quest for value.

Ms Deering welcomed that one in three property investors have a pension, with one in four investing in stocks and shares.

The rental market remains robust with 61% of respondents saying that, in the last year, the rental income from their investment properties has remained the same, with 19% saying it had increased slightly.

48% of respondents believe that Dublin city centre will achieve the highest rental appreciation over the next five years.

Declan Cassidy, managing director, Gunne Residential said: "The location of the property and purchase price of the property are the most important issues for investors.

Three bed semi-detached houses are the property of choice for over half those surveyed.