Things are looking up for the Australian real estate sector
It may be high time to reignite your efforts to invest in your property again. According to reports, property investors have found their appetite once more. There’s even a surge of first home buyers once more.
It appears that investor appetite saw an unexpected surge in August 2017, according to a news report from ABC. Despite stricter bank regulations and higher interest rates, value of investor loans went up to 4.2 percent for the said month amounting to $12.6 billion. Total home loans went up by 2.1 percent which is greater than what was anticipated from the market. Other things making a comeback include:
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- owner-occupier loans – 0.9 percent increase
- first home buyers – 17.2 percent share of the owner-occupier market which is the highest for the last four years and far from historic lows at 13.4 percent earlier in the year
“In annual terms, investor lending has moderated down to 6.5 per cent over the year, from 26.3 per cent at the start of this year,” explained J.P. Morgan economist Henry St John. Despite the investor interest rebound, the economist still cautions about the context of the investor lending cycle.
“In annual terms, investor lending has moderated down to 6.5 per cent over the year, from 26.3 per cent at the start of this year,” said St John. Nonetheless, people should expect the trend for investor lending growth to continue.
“APRA data for the second quarter showed banks making progress in reducing interest-only loans, though measures to date do not appear sufficient to slow credit growth in line with income growth, per the regulator’s’ desire,” he added.
Getting into the property market
Getting into the Australian property market can be risky, even in the best markets. That’s why we always recommend:
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- Narrow down the Australia regions and suburbs you are thinking of investing in
- Engage experienced property professionals that have a great track record in the local areas you are planning to invest in
- Research, research, and more research.
Planning on getting into the Australian property market?
Whether you plan to rent, buy or sell, the support of good local property and real estate specialists can make all the difference.
Tradebusters Connect has a Top 3 Local Business Pick list of recommended property professionals in your local area to help you navigate the process.
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Recruitment Agencies Castle Hill Sydney
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