Property Investors Driving Growth

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Property Investors Driving Growth

Mortgage broker What If We Finance has reported that close to 50% of home loans originated in NSW have been for property investors. This is a sign that the property market is starting to heat up and this is one of the highest level of investor activity ever recorded.

Stronger growth in lending to investors was also been confirmed by official figures from the Reserve Bank last week.

These showed credit to housing investors growing at an annual pace of 5.8 per cent, the fastest in two years, compared with 4.1 per cent annual growth in owner occupied housing.

While this is symptomatic of a low interest rate environment when one looks at improving auction clearing rates and the impending spring sales cycle are we starting to see the start of an upward swing in property prices.

The news is not all bad for first home buyers if you look in the right areas there are still reasonably priced properties to be found.

Mortgage broker What If We Finance also advises banks are keen for good quality deals so investors should be able to get aggressive pricing. Bank valuations may still remain a risk so using a broker for a home loan is of upmost importance

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