Investor home loans hit five-year high
Investor home loans hit five-year high
Posted on Tuesday, June 11 2013 at 4:05 PM
Investors are coming back to the market place, with loans for housing finance on the rise.
CommSec reports
the value of home loans taken out by investors rose by 1.1 per cent in April
thanks to rising rents and falling interest rates.
“Tight rental
market, state government grants for home builders, a relative lack of new homes
being built and low interest rates are attracting investors,” CommSec chief
economist Craig James says.
“First homebuyers
are still reluctant to buy homes, preferring to rent instead. Fortunately
second and subsequent homebuyers are active in buying and building homes
together with investors.”
The number of new
owner-occupier housing loans rose by 0.8 per cent in April, after a 4.8 per
cent lift in March – the strongest gain in four years. The proportion of first
homebuyers in the market rose from a near nine-year low of 14.2 per cent in
March to 14.3 per cent in April. Fixed rate loans rose from 18.4 per cent of
all loans to 20.6 per cent in April – also the highest level in five
years. The average home loan across Australia stood at $301,800 in April, up
2.6 per cent on a year ago.
“The housing
market is in recovery mode,” James says.
“The good news is
that low interest rates and government grants are serving to boost new
construction. Interestingly, it’s not the first homebuyers that are embracing
the opportunities; rather they’re relying on investors to get the new houses
and apartments built.”
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