Unprecedented low interest rates, combined with moderate pricing, tax deductions and relaxed superannuation rules has seen many property investors jumping at the idea to reap the many financial benefits of property investing.
Within the past year, Australian property prices had been steadily falling and spending was minimal. The Reserve Bank of Australia (RBA) drastically cut interest rates and now we find ourselves in a state of recovery with house prices on the rise and auction sales flourishing. The bulk of the market activity, however, has been driven by investors, rather than home buyers, looking to capitalise on the opportunities.
Investor loans have leapt by 16 per cent in the past 12 months according to ABS figures. Meanwhile loans to occupiers have also increased but at a much slower rate – 6.6 per cent.
Aside from the helpful nudging coming from the RBA, property investment is soaring due to a perceived lack of safe options in the wake of the GFC. Investors are still gun-shy when it comes to intangibles and they don’t want to be burnt again. And with population unrelentingly on the rise, the demand for housing is a secure constant.
Investors Versus Home Buyers
While this has led many to declare an end to the two year property slump, it appears we are gradually shifting towards a nation of investors rather than homeowners. And the current rise in house prices is not what prospective home buyers will want to see.
Investment Property in Sydney
If you would like to get your foot in the door with an investment property in Sydney, or need more advice on how to manage your current investment portfolio, contact Rass Global Investments..