Investors lead the way

Property investors in Australia are dominating the mortgage market, according to new data from Australian Finance Group (AFG).

According to AFG’s latest mortgage index, 34.1% of all home loans arranged nationally in February 2010 were for property investors – the highest percentage ever recorded by AFG.

The amount of invesment loans and home loans for property investors arranged was 25% higher than the level of investment loans recorded six months ago in August 2009.

AFG’s general manager sales and operations Mark Hewitt said while investor confidence has been rising for several months, AFG had not expected the level of investors in the market to be as strong as it was.

“Investors are now the driving force of the market, encouraged by rising property prices in recent months, and the longer term view that a housing shortfall will continue to underpin future price growth as well as rental yields,” Mr Hewitt said.

"We are pleased to see second tier lenders making a strong return in recent months. Borrowers are starting to see these lenders as a genuine alternative to the majors again.”

Data from AFG showed second tier mortgage lenders accounted for 17% of all new home loans written in February 2010, more than the double the proportion that was recorded this time last year.

If you are thinking of buying property in Australia, Intellichoice has a wide range of real estate developments all around Australia, including Brisbane, Sydney, Melbourne, Sunshine Coast and Gold Coast. The mortgage brokers at Intellichoice can also assist with home loans and investment loans.