Handbrake on the property market

Auction“The campaign by financial regulators to take the heat out of property investment appears to be working, with investor mortgages tumbling by 8.5 per cent, the largest fall in seven years.”  ABC News Nov 15

Have you been to auction or open house lately?  There’s nobody there.   A few months ago you had to queue to get in.

Here are the Top 5 reasons why investors have left the property market…..

  1. APRA making banks change their lending criteria for investors
  2. Banks increasing interest for investor loans
  3. Lower rental yields in most areas
  4. Housing cycle reaching its peak during spring time
  5. Property sellers price expectations are too high

In fact, the value of lending to investors keeps falling and is now lower than lending to owner occupiers.  (Source:  The Australian Bureau of Statistics)  Here’s some more information for you:  Core Logic Report Nov 15

But there is some good news for property investors.

Some Banks and Lenders are still chasing investor loans. They have competitive interest rates, low fees and sensible assessment criteria.  This means you can still find the right lender and loan package for your investment property purchase.  Borrowing for invesment property

Just as important is buying in the right location.  Especially in today’s changing property market.

So who can help you find the right location to buy?

Buyer’s Agents will find you property that is usually under market value, positively geared and has growth potential.  The reputable Buyers Agents give you unbiased professional advice with no conflict of interest – plus they coordinate pest, building, strata and all other checks. Rethink Investing – Buyers Agent

 

Contact us today!

0400 449 135