Home loan customers 'are making a smart investment'

Aussies may be encouraged to apply for cheap home loans in light of a review by ANZ, which suggested that property is the highest returning asset over the last 24 years.

Looking at data from 1987 to 2011, the study found that owner-occupied housing generated an annual return of 12 per cent, which made it more financially beneficial than investment property, which brought in less than ten per cent.

On average, commercial property only generated a return of 4.2 per cent, while term deposit customers received 3.7 per cent on their capital each year.

Paul Braddick, ANZ property research head, commented: "Owning your own home has been the best investment you could have made by a mile."

He added that even with costs and taxes factored in, higher returns were generated through owner-occupied housing could be achieved through equities.

Those that opt to act on this latest data and take out a home loan may want to follow the advice of Mortgage Choice spokesperson Kristy Sheppard, who recent stated that it is important to find a product that is suited to individual needs.

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