The findings are a welcome sign that Australians are beginning to feel confident enough to take advantage of the low interest rates, and are considering a significant investment in property in the near future.

Of the 25 per cent of respondents who already own an investment property, 68 per cent own one property, 19 per cent own two, and 13 per cent own three or more properties.

There was a close race at the top when respondents were asked about their five most sought-after aspects of an investment property.

Sixty-six per cent of respondents said their focus was tenant demand in the area, and almost the same number - 65 per cent - said they wanted an investment property in the right suburb and street.

Buyers said they also look at locality in relation to amenities and entertainment (53 per cent), population growth (46 per cent) and infrastructure (44 per cent).

By far the most preferred investment strategy (59 per cent) for respondents was to buy an average property in an up-and-coming area and to hold on to the property.

So when investing, keep in mind that understanding your financial goals and deciding on the right strategy to achieve them is key when making any investment decision, including property investment.

Here is a list of considerations:

■ Be realistic about capital gain and rental income. Are your expectations for rental income of your property realistic to market trends? Research rents in the locality.

■ Consider using the equity to purchase an investment property. If you already own property, you may be able to use equity to buy another one. You can do this by selling a property for more than what you owe on it and using the funds as a deposit, or applying for a home loan against the existing property, using your equity as a deposit.

■ Carefully weigh up positive versus negative gearing. Consult with your financial adviser to find out which is of greater benefit to your overall financial position. Investigate the tax and legal implications of property investment by talking to a financial planner, accountant or solicitor.

■ Choose the right finance. Get the right finance organised early in the plan, or at least get pre-approval, so you know how much you have to play with.

■ Consider interest-only versus principal-and-interest loans. Although interest-only loans will not reduce the loan amount, monthly repayments will be lower. This will allow you to make greater contributions to your principal place of residence while the investment accrues capital gains.

For more information, phone Richard Windeyer on 1800 01 LOAN.