First homebuyers flee as investors return in record numbers

Font size :

The number of first homebuyers has dwindled following a string of rate rises and the withdrawal of the government grant boost.

According to the latest data from Australian Finance Group (AFG), the proportion of loans taken by first time buyers sank to just 11.3% in February 2010 - the lowest level since February 2009. First homebuyer's activity has fallen continuously since August 2009.

In contrast, investors have continued to dominate the market, taking 34.1% of the total loans sold by the mortgage broker. Mark Hewitt, general manager for sales and operations said this is the highest level the company has ever recorded and corresponds to a 25% increase from six months ago.

Investors in NSW were the most active, taking 38.5% of all loans while Victoria saw loans for property investment climb to 37.2%. WA and Queensland recorded the lowest proportion of investment loans during February at 29.9% and 29.5% respectively although these figures represent robust levels of investment activity.

"Investor confidence has been rising for several months, but we haven't been expecting a figure for February as strong as this one," said Hewitt.
"Investors are now the driving force of the market, encouraged by rising property prices in recent months, and the longer term view that a housing shortfall will continue to underpin future price growth as well as rental yields."

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

Sunday, Sep 24, 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