The mortgage brokers at Smartline Rockingham have noticed that we are brokering less investment loans. The latest Housing Finance report from the Australian Bureau of Statistics (ABS) agrees with us. According to the report, investment loans have gone down 5%. The current value of loans to investors is $11.291 billion while the value of loans for owner-occupiers is currently $20.702 billion.
The value of first home buyer loans has risen from 14.2% to 14.4%. Between March and April of 2016, the size of the average loan for a first home buyer rose to $330,600 for a gain of $1,900. For all owner-occupier loans, the average rose to $361,500 for an increase of $4,300.
Recent decreases in owner-occupier finance had been blamed on property investors buying properties and raising the prices. When the Government forced banks to limit investment loan growth to 10% per year, it made investment loans tougher to obtain and has lowered investor activity.
How Does This Represent Opportunity?
For now, less homes and less property are being bought by investors. This means less pressure on prices. However, the recent development of Brexit, in which the UK voted to remove themselves from the European Union, may be a game-changer.
Brexit has destabilised Europe and the UK, making them less desirable for investors. This could cause more global investors to choose Australian property as an investment. So we really don’t know how much longer opportunity is going to be there.
Obtain Home Loan Pre-Approval at Smartline Rockingham
We think that right now is a potential turning point in the housing market. Housing prices are as low as they are going to get, making the 20% deposit for market entry the smallest it will ever be again. If you can possibly find a way, now might be the perfect time to buy a first home.
Call a mortgage broker at Smartline Rockingham today to find out if you can be pre-approved for a home loan: (08) 9527 1800.