Landlords 'applying for home loans for properties in other states'
Landlords are increasingly looking to apply for home loans to enable them to purchase properties in other states, new figures indicate.
Data from Terri Scheer Insurance revealed that one-fifth of its customers have rental property outside of their home state, reports National Features.
Carolyn Majda, manager at the firm, commented: "This suggests that investors are choosing rental properties in areas they believe will give them the best returns, regardless of where they live."
The most popular spot for those applying for home loans for rental property was Queensland as prices in the region dropped.
However, despite the rising interest in investment property in the state, the proportion of homes owned by landlords was one of the lowest in the country at just nine per cent.
This comes after Shane Oliver from AMP Capital Investors suggested that the cost of purchasing a property may decline if the nation's economy is affected by the global economic problems.
Have a question about home loans? Ask the money gurus at Mozo Answers.