Property investor numbers rise in Australia
Article by Mozo
Property investors in Australia are back despite the recent increases to the country’s base interest rate, it has been claimed.
According to Loan Market Group’s chief operating officer Dean Rushton, home loan enquiries have more than doubled during the past three months and property investors make up 40 per cent of the customer base in the market.
This is double the percentage of property investors in the marketplace in September of 2009.
Speaking to the Sydney Morning Herald, Mr Rushton said: "[Property investors] are seeing opportunities to buy an investment property and are undeterred by the three recent increases in official interest rates and the prospect of rates continuing to head up from the generational lows they reached last year."
However, Nomura Australia chief economist Stephen Roberts believes that the boom in interest could be short-lived as variable rate home loan interest rates rise, the paper reports.
Last month, a study by Mortgage Choice showed that fixed loans remained unpopular in December 2009, accounting for just one per cent of the company’s approvals.
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