I read an article that was published in the Feb 14/2012 edition of The Australian Financial Review that I though I'd share:
Low interest rates, falling property prices and rising rents are drawing investors back to the housing market. The seasonally adjusted dollar value of mortgaes to investors increased by 7.5% to 7.1 billion in Decemebr and is trending up more steeply than mortages to owner occupiers.
"It was a stronger increase than I thought" said Macquarie real estate strategist Rod Cornish. "Its propberly the view interest rates are stabilising and starting to come off and residential markets would stabilise over the course of this year."
He attributed some of the rose to self managed super funds that are able to borrow money to invest in property after law changes last year.
Macroplan senior economist Jason Anderson said fixed-rate mortages were popular amoung investors wanting certainty and these had become cheaper. Rising rents and falling prices were incentives to buy. "Part of that is bottom feeding where people have seen prices come off 10-15% in some area's and they think its buying time".
"They can get a pretty good rental and the prices are back to where they were in 2006 even." he said.
Raine & Horne CEO Angus Raine said with fewer first home buyers, investors were filling the gap.
This information was gathered from February 14/2012 edition of The Australian Financial Review written by Ben Hurley.
DEB BRADY
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