A combination of low interest rates and increased buyer confidence is making big waves in the property market, according to the recent figures from the AFG Index. Enhanced competition has seen less activity with mortgage loans from the big banks, and a stronger push towards alternative lenders. There was a 19% increase in national home loan activity in the last three months compared to the same time last year, and Queensland showed a 17% jump from the September quarter.
Investors and home owners are taking action
It seems that investors are jumping on board with returning to the market, and those that got in early and purchased investment properties in prior months were able to capitalise on lower purchase prices and stronger returns. Homebuyers are gaining confidence as well, with nearly 29,000 mortgages lodged in that three month period. It would appear that those looking at purchasing a dual occupancy home for the purposes of occupying one residence and renting out the other are in a prime position in todays market to take advantage of low mortgage rates and affordable purchase price before interest in the market escalates, driving purchase price higher with increased demand.
Interestingly, it’s not just home owners moving away from the big banks for lending. Investors showed a 47% rate of non-bank lender lodgements, using mortgage brokers to help them acquire loans with more competitive interest rates and navigate better purchase criteria for home and land packages.
The take home message
So what does all of this mean to the average Australian considering purchasing an investment property? Now is the time to take action and benefit from the currently affordable house and land packages available and stable interest rates, before others start to take notice in the turning market.
Take a good look at your financial position before making any decisions, do your research and compare prices from multiple vendors to make sure that you are getting the best deal, and make sure you aren’t liable for any unexpected expenses or add ons. The ultimate goal is to secure an investment property in a suburb with strong growth, strong rental demand, and with a quality build and financial plan that optimises returns and limits overcapitalisation.
Whether you choose to opt for a dual occupancy home or not, you may still benefit from learning about how to make a smart investment property purchase choice. Read our article here.
You can also view our current listings here in order to compare inclusions, purchase price, and services with other vendors and maximise your buyer confidence.
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