Time right for first time property investors

The timing is particularly good for first time property investors to have a go at being a landlord.

“Banks are not so keen any more on lending to people who already have a few investment properties because they have tightened lending rules and are generally concerned that people don’t take on too much debt,” said mortgage broker Anthony Smith from Melbourne’s south east.

“But people with equity in their own homes who have never had an investment property before are being approved,” says Smith.

And they face reduced competition for good properties from other investors at the moment as well. Banks are now less willing to lend to the self employed and contractors, forcing those people out of the property investment market as well says Smith.

“A lot of investors have dropped out because they simply can’t access funds.”

Source: Courier Mail