Home News Canberra residential investors gain momentum

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.
 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership

Many would rather rentvest than be tied down to a costly owner-occupier mortgage, according to new studies Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More mortgage news and articles

Sponsored Links

Monday, Aug 21, 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