{"id":5385,"date":"2024-02-15T09:14:43","date_gmt":"2024-02-14T23:14:43","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5385"},"modified":"2024-02-15T09:14:43","modified_gmt":"2024-02-14T23:14:43","slug":"theyre-back-why-property-investors-account-for-one-in-three-new-home-loans","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/theyre-back-why-property-investors-account-for-one-in-three-new-home-loans\/","title":{"rendered":"They\u2019re back! Why property investors account for one-in-three new home loans"},"content":{"rendered":"
Lending to property investors is soaring once again. We lift the lid on what\u2019s driving investor interest \u2013 and what it could mean for the property market throughout 2024.<\/strong><\/p>\n It looks like property investors are back \u2026 and in a big way.<\/p>\n The\u00a0latest ABS figures show<\/a>\u00a0that in December 2023, banks lent over $26 billion in new home loans \u2013 and one-third of this figure, a whopping $9.5 billion, was to property investors.<\/p>\n That equates to 36.2% of all housing loans \u2013 the highest market share for property investors since mid-2017.<\/p>\n It\u2019s also quite an uptick from December 2020, when the ABS says investors took out just 23.6% of mortgages.<\/p>\n So why the big shift in recent times?<\/p>\n There are many reasons why people may love owning a rental\/investment property.<\/p>\n An investment property can be a source of extra income, and right now, some investors are pocketing very attractive rental yields (that\u2019s annual rent divided by the purchase price of the property).<\/p>\n PropTrack, for example, is\u00a0reporting yields as high as 9%<\/a>\u00a0in some suburbs.<\/p>\n Investors may also expect to see their property grow in value over time, which could add up to some pretty impressive capital gains.<\/p>\n CoreLogic looked at the results of\u00a086,000 property resales<\/a>\u00a0in the third quarter of 2023, and found 93.5% were sold for a profit, with the median gain coming at $298,000. Not bad at all.<\/p>\n And home values are tipped to jump a further 6% in 2024,\u00a0according to ANZ Bank<\/a>.<\/p>\n Add in rental vacancy rates hitting record lows of\u00a01.1% in January 2024<\/a>, and many investors are attracting good tenants, which can be great for cash flow.<\/p>\n On a personal level, buying an investment property could potentially be a boost for your long-term financial well-being.<\/p>\n ABS has acknowledged that\u00a0rising household wealth in Australia<\/a>\u00a0is being supported by house prices that have continued to grow despite higher rates.<\/p>\nWhat makes an investment property so attractive?<\/h3>\n
How could the return of investors impact the market?<\/h3>\n