In this week’s two minute property investment news video: rates will stay on hold, investors are entering the market again and make up 30% of all home loans.
There’s plenty of good news for property investors… with minutes from the RBA’s latest meeting showing rates should stay on hold for awhile.
The financial markets expect no change in the cash rate for the rest of 2014. That’s mainly because the Australian economy has picked up over the past two quarters but growth is likely to be below trend into the future, with mining investment continuing to decline.[sam id=43 codes=’true’]
In other news – it has been revealed that investors now make up about a third of the market. In fact they account for about 30 per cent of all home loans.
According to Mortgage Choice, investors are entering the market again thanks to low interest rates and rising property prices – with property values increasing by about 12 per cent across the combined capital cities last year.
There’s also been an increase in mortgage holders borrowing more than 80 per cent, which means investors are having to pay for mortgage insurance.
Also …… increased residential property prices in Sydney, Melbourne and Brisbane are a result of normal market movement and NOT a bubble, according to a survey by the Australian Property Institute.
There’s also a belief that significant falls in prices are unlikely, but it’s no surprise first home buyers are finding it difficult to enter the market – with affordability and increased competition making it much tougher.