High-end property purchases 'not made with home loans'

More people are considering high-end home loans, according to new reports.

The number of auctions for properties worth over $3 million are "gathering pace", a piece in the Australian recounted.

In Melbourne, 19 properties of this value were sold in the September quarter, compared to 12 in the same month this year. This represents a 58 per cent increase, figures from Australian Property Monitors indicated.

Sydney experienced a similar increase in sales, according to the organisation, where 22 high-end homes sold at auction during the same period in 2008.

However, this year there was a 64 per cent rise, with 36 sales.

Few people used low interest home loans to purchase the properties, Matthew Bell, APM economist suggested.

"I don’t think they are taking out a mortgage to buy these properties," Mr Bell told the news provider.

"Many of these properties were heavily oversold and people with cash are taking advantage of any bargains."

He added the current economic outlook and the opportunity to "grab a bargain" has resulted in the increase in purchases.

Property is still the great Australian dream, according to Resi consumer advocate Lisa Montgomery told News Limited.

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