Investors set record in rush back to the market
Investors set record in rush back to the market
Posted on Monday, September 02 2013 at 11:31 AM
Property investors are returning to bricks and mortar – and in a big way.
Around 49.5 per cent of home
loans processed in New South Wales last month were for investors, according to
mortgage broker company Australian Finance Group. This is the highest level of
investor activity the company has ever recorded for any state. Other areas
around the nation were also strong, with investors comprising of 36.7 per cent
of new home loans processed in Victoria, 35.8 per cent in Queensland, 32.9 per
cent in South Australia and 28.4 per cent in Western Australia.
General manager of sales and
operations Mark Hewitt says $3613 million worth of loans were processed in
August, which is higher than the record-breaking figure of $3608 million in
May.
“With property prices
starting to rise and rates set to remain low for a while yet, a lot of
investors are anticipating the next property cycle,” he says.
“The New South Wales figure
is very strong, but in part this is because two thirds of first homebuyers
exited the market after the withdrawal of buyers’ grants.”
Along with unprecedented
levels of investor interest, New South Wales saw the average mortgage size
break through the $500,000 barrier for the first time, to $505,000. Fixed home
loans are also becoming more popular, with 26.1 per cent of new loans now
fixed. This suggests many borrowers are locking in part or all of their loans,
in anticipation of the next rate cycle turning, Hewitt says.
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