Property is In and Shares are Out, according to a snap consumer poll conducted by the building advisory service of the Australian Institute of Architects.
With the Federal Government capping the concessional threshold for superannuation contributions at $50,000 for 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 per cent of the 450 respondents chose property, with 40 per cent investing in their own home and 31 per cent investing in a negatively geared property. Only 29 per cent 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.