Investors flocking back to property
Australia’s biggest mortgage broking group, AFG is reporting that the number of loans issued to property investors is rising fast. AFG data confirmed the trend of investors returning to market, with 30 per cent of all mortgages arranged for investors – up from a low of 24.5 per cent in March.
The investment trend was particularly high in New South Wales and Queensland, where 34 per cent and 33 per cent respectively of all loans arranged were for investors. The share of first home buyers remained steady at 19 per cent of the mortgage market.
Mark Hewitt, AFG’s General Manager Sales and Operations says: ‘As every week goes by we’re seeing growing signs of confidence in the property market. Recent reports of house price increases are stimulating the market as a whole, and encouraging investors in particular. That said, because interest rates remain at forty year lows, we’d encourage buyers to take into account the fact that their mortgages will almost certainly cost more to service as the overall economy picks up.’