In this week’s two minute property investment news video I talk about the increase in people taking out investment property loans.
One way to track who’s buying property, is to see who’s borrowing money. Anyone competing to buy property has probably noticed the return of the investor, and now the numbers have come out to prove they’re in force.
The latest findings from the Roy Morgan Research Consumer Single Source survey show that over the past four years the number of investment property loans in Australia has grown by 37 per cent compared to an increase of only 4 per cent in the number of owner-occupied loans.
In 2010, just under one million Australians aged over 18 had an investment property loan compared to an estimated 1.31 million as at March 2014, which is an increase of 37 per cent.
Over the same period, the number of Australians with an owner-occupied home loan increased from 4.66 million to 4.83 million, which is an increase of only four per cent.
According to the survey, the growth in investment property loans has been driven by the 35 to 64 age group, which accounts for 78 per cent of the increase.
Norman Morris, a communications director at Roy Morgan, notes the level of borrowing by investors in coming years will be highly dependent on government policy and the economic climate.
Morris says “The future of negative gearing, increased property investment by self-managed super funds and interest rates are some of the factors likely to play an important role in the attractiveness of borrowing for investment property in the future.”
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