The cost of living in Australia has become the biggest concern for the next 12 months among upcoming property investors, new research shows.

Of all the 1,060 respondents to the Mortgage Choice 2011 First Time Property Investors Survey, costs of living such as clothing, utility bills, etc – 24 per cent of respondents said they are most concerned with cost of living such as clothing and utility bills. Interest rates only come second with 21 per cent showing concerns. Economic management at Federal Government level follows with 18 per cent, Rise in housing prices with 9 per cent and job security – 8 per cent.

Mortgage Choice also found that of those who will buy their first investment property in the next two years, for 19 per cent it is their first ever property purchase.

This incidence was highest in New South Wales (26 per cent) and lowest in Western Australia (13 per cent). Gender-wise, males were more likely than females to make this choice (21 per cent versus 17 per cent).

Of all the 1,060 respondents, each of whom were buying before July 2013, close to one in four will do so alone. Queenslanders were most likely to fly solo and Western Australians were least, while the genders were on par.

The number one motivator to buy was ‘I want to set myself up financially for the future’ (82 per cent), then ‘I see more benefit in investments such as property than in I do shares’ (57 per cent). ‘Tax benefits’ ran third (53 per cent), followed by ‘I’ve researched the property market and feel property investment will enable me to achieve my financial goals sooner/better’ (40 per cent) and ‘potential rental yields’ (39 per cent).

Only 18 per cent did not plan to add to their investment property portfolio after this first purchase while, on the flipside, another 18 per cent were planning to purchase as many as possible.

Mortgage Choice spokesperson Kristy Sheppard said, “Once we’d delved into the results, the description that came to mind for these first time property investors was logical, well-planned, long term thinkers who were determined, careful researchers and aware of their limitations.”

“This may be why so many are buying for investment purposes before becoming a home owner.

“The findings show these novice investment buyers to be almost the opposite. They are making educated choices based on a long term commitment to their property cause and are thinking with their heads rather than hearts. All are vital attributes of a successful investor.

“For example, 84 per cent already knew how much of an interest rate buffer they were going to factor into their repayment budget and only 2 per cent weren’t putting in a buffer. Also, 47 per cent were looking to hold onto the property for 10 years or longer and 43 per cent were looking at five to 10 years.”

Some 54 per cent of respondents owned their first home also and 27 per cent had owned more than one home before.