Canberra residential investors gain momentum

Font size :
Lower interest rates and the possible change to negative gearing are powering Canberra residential investor activity.

Over June, the value of approved residential loans to investors hit $213.9 million, according to the Australian Bureau of Statistics. The June figure registered an increase of 14.4 per cent from the previous month, although it trailed the $224.1 million recorded in the same period last year.

However, the value of residential lending approved in Canberra is still down by 17.1 per cent in the first half of this year compared with what has been recorded in the first six months of 2015.

Increased residential investor activity in most state markets came soon after the rate cuts last May and the recent proposal by the Australian Labor Party in its federal election campaign to shift tax treatment for residential investment property to negative gearing.

This momentum of residential investment is expected to continue throughout the year just as another rate cut was announced this month, along with changes to superannuation policies.

The annual monthly growth rates over the second half of 2016 are also expected to go above the figure set by financial regulators. This would run counter to what happened last year when higher mortgage interest rates imposed on investors resulted in the pronounced decline in loans for the second half of 2015. Financial regulators were then concerned about strong lending to investors so interest rates were subsequently increased.
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords