Investors dominate loan market

Investors share on the loan market have increased to 40.6% for August, well above the average of 30.9% for the past 23 years, clear signs that the insatiable appetite for property are far from satisfied.

Refinanced owner occupied home loans have also increased to a record high 49.7%, well above the long term average of 36.5%. Despite these numbers, home lending for investors has actually slowed down, rising just 6% in 6 months, compared to a 21% increase 6 months before. Home buyers are clearly outgunned as lending dropped by 4% in the past 6 months, as opposed to a 9% gain 6 months prior.

Despite the Reserve Bank’s warning on the glaring disparity between home buyers and investors, the building industry has remained as one of the most optimistic sectors in the economy as the mining boom starts to fade.

Read more about this on the Australian website.

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Author: Dorian Traill

Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.

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