Wednesday, May 2, 2007

property invest is high?

Property investment hits highs

By Nicki Bourlioufas

May 02, 2007 10:57am

Article from:

  • Property investment lending hits record highs
  • Average home loan size stands at $307,000
  • NSW has the greatest loan size at $362,000

INVESTMENT in residential property is back in favour as data shows record levels of investment during April 2007 as people bet on a stronger property market and capital gains in 2007.

The AFG Mortgage Index shows that last month 33.8 per cent of mortgages were sold to investors rather than owner occupiers in April – an increase on March’s all time high of 32.9 per cent and a significant increase on the figure of 28.3 per cent recorded 12 months ago.

Western Australia and Queensland continue to drive the market for investors, but it is the growing resurgence in New South Wales, Victoria and South Australia which is leading to the dream scenario of healthy, growing markets coast-to-coast.

Despite fears about the WA market coming off the boil, investment there continues at near record levels and the average mortgage size broke through the $350,000 barrier last month.

Positive property outlook
Mark Hewitt, General Manager of Sales and Operations said things were looking positive for the property market.

“It is seldom that we see the indicators for every state looking positive, but right now that’s exactly what’s happening," he said.

"The levelling off in interest rates is just what property markets on the east coast need to build up a momentum. Meanwhile the strength of the resources sector continues to support property markets in WA and Queensland."

"We’ve just been doing our internal business forecasts for the next year and AFG is very positive about the year ahead.”

Mortgage size growing
The average home loan nationally now stands at $307,000, with the highest average loans in NSW ($362,000) and WA ($352,000) followed by Queensland (($288,000), Victoria ($277,000) and South Australia ($231,000).

well, i hope they are picking up the cheap repossessions that banks/finance joints are taking-selling at firesale $$$....or if those investors have not learned that buying in an inflated market was how those houses fell like cards....

more banter

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