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Investors are returning to the property market

Investors are returning to the property market

New data from the Australian Bureau of Statistics (ABS) reveals that investors are returning the property market in force. After 12 months of subdued activity due to restrictions on investor loans imposed by government regulators, lenders are now actively courting borrowers who want to invest in property.

The number of fixed rate home loans approved for the purpose of investing in housing jumped up 3.9 per cent in May 2016, according to the ABS. That is the biggest monthly growth rate in a year.

 

Is now a good time to invest in property?

With the outcome of the federal election now clear, investors are entitled to believe that negative gearing and capital gains tax changes proposed by the Labor opposition will not proceed. That makes investing in housing more attractive.

Property prices also look more reasonable than in 2014 and 2015, when prices were growing fast. Adding to these positive factors are the many enticing deals now being offered by lenders. Some lenders have reduced rates, particularly on fixed rate home loans while others are offering special deals and discounts.

 

How to find a good investment home loan deal

Researching the home loan market and finding a good home loan deal is just as important as researching the property market and finding a good value property to invest in. A bad investor home loan can add thousands to your costs and lock you in for years. A great value home loan can add money to your bottom line and make property investing worthwhile. You can compare loans from all the major lenders in Australia at InfoChoice.

 

Fixed rate home loans are particularly popular with investors. Fixed rate loans help you manage expenses and provide certainty for the period of the fixed rate. Right now one year fixed rate mortgages are starting from 3.69 per cent. You can compare fixed rate loan deals here.

 

Variable rate home loans have never been offered with rates as low as they are now. Many economists are predicting variable rates may even be cut further, perhaps as soon as August 2016. You can compare variable rate home loans from all of Australia’s major lenders here.

 

Source: InfoChoice.com.au



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Today's Home Loan Rates

Institution Product
Title
Standard
Rate^ (%)
Comparison
Rate* (%)
Details
Essentials Home Loan 60 3.49 3.51 Go to site
Advantage Home Loan 70 (No Offset) 3.64 3.66 Go to site
Home Value Loan - Owner Occupied 3.65 3.66 Go to site
Orange Advantage ($500k+ where LVR <=80% O/Occ) - Principal & Interest 3.74 4.06 Go to site
UHomeLoan SVR Value Offer (P&I) 3.74 3.74 Go to site
Institution Product
Title
Standard
Rate^ (%)
Comparison
Rate* (%)
Details

^Standard rate for a $250,000 standard loan. The 3 year table shows loans that are fixed for 3 years.
*Comparison rates shown are based on a home loan of $150,000 for 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
For information on how we’ve selected these “Sponsored” and “Featured” products click here.



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