In a fight to secure themselves a place to call their own, Aussie buyers are now starting from scratch by buying blocks of vacant land with the help of personal loans.
According to recent data from the Australian Bureau Of Statistics, despite the 5.3% decline with all lending during September, personal loans are now at a record five month high, with nearly $8 million worth of personal loans accounting for the purchase of blocks of land.
“It appears the government is making more land available, particularly in south-west Sydney and north-west Sydney – particularly with all the infrastructure corridors going in,” CommSec senior economist Ryan Felsman told Domain.
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Housing Industry Association senior economist, Geordan Murray has revealed one of the big reasons Aussies are turning to personal loans to fund their housing dreams is due to the fact that current housing options do not meet the satisfaction of buyers, bringing on a highly competitive market.
“There is a bit of a mismatch between what households are wanting at the moment, and the new housing that’s being supplied. As soon as land becomes available it is being snapped up very quickly by households,” he explained.
Renovations also contributed to the growth in personal loans as Aussies are now choosing to work with what they’ve got to get the home they really want.
“A lot of people are looking at those costs and saying ‘instead of paying all that in tax and transaction costs, if I put that money into a renovation I could get that improvement in my house that I’m looking for’”, said Murray.
If you’re after a personal loan to build or re-create your dream home, our personal loan comparison tool compares over 100 loans from 43 lenders, but if you’re in a hurry, have a quick skim of a few down below.