Powered by MOMENTUM MEDIA
subscribe to our newsletter

Investor lending rebounds in August

A rebound in investor lending has seen it increase by 10 per cent from its trough in April, a recent study has found.

Commenting on fresh figures released by the Australian Bureau of Statistics (ABS), CoreLogic residential research analyst Cameron Kusher has highlighted that investment demand is lifting.

According to the ABS, over the month of August there was $31.4 billion worth of housing finance commitments, with $19.5 billion of commitments by owner occupiers and $11.9 billion in commitments to investors.

Mr Kusher noted: “The value of lending to owner occupiers has fallen over two consecutive months while lending to investors has risen for the fourth consecutive month.”

Although below its April 2015 peak, the recent rebound has seen the value of investor lending increase by 10.0 per cent over the five months to August 2016.

Advertisement
Advertisement

PROMOTED CONTENT


However, although investment demand is lifting, “it is not expected to lift to the substantial levels recorded earlier in the current housing cycle,” Mr Kusher said.

“The fading demand from owner occupiers reflects that many have already upgraded or downgraded in the current cycle as much as the fact that particularly in Sydney and Melbourne it is getting a little harder to justify a move in the context of significant transactional costs,” he pointed out.

“When owners look at the cost of upgrading and the market exit cost and entry costs, many are probably now considering a renovation as a better option than moving,” he said.

[Related: Aussie property investors remain bullish]

Investor lending rebounds in August
mortgagebusiness

Latest News

US-based global asset manager Ares Management has made a non-binding conditional proposal to bid for 100 per cent of AMP Ltd shares. ...

The major bank’s FY20 cash profit has plummeted 42 per cent on the prior comparable period, driven by full-year credit impairment charges ...

A former property developer has been found guilty of fraud in relation to obtaining funds from SMSF investors following an ASIC investigatio...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Court cases and penalties

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.