RBA warns of high investor activity

Home investors have taken a huge chunk of the property market for the past months as opposed to home buyers. The RBA has warned that these levels are a risk to market stability. In New South Wales and Victoria, investors make up 40% of the value of home loan approvals. Although investor activity has yet to reach alarming volumes, the RBA has warned for excessive speculation and riskier lending methods.

Investors have been on the rise due to low interest rates and changes to banking procedures. First home buyer incentives in certain states have also been reformed or removed, causing home buyers to shy away from the market.

Read more about this on the Smart Property Investment website.