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Investors swoop

Investors are flocking to the property market in ever-increasing numbers, according to figures released by mortgage broker AFG.

AFG’s latest Mortgage Index shows almost half of all mortgages processed in August by the broker in New South Wales alone, were for investors. This is the highest level of investor activity the company has ever recorded for any state.

Investor participation across the nation was generally high. Investors comprised 36.7 per cent of new home loans processed in VIC, 35.8 per cent in QLD, 32.9 per cent in SA and 28.4 per cent in WA.

Mark Hewitt, General Manager of Sales and Operations remarked that with property prices starting to rise and rates set to remain low for a while yet, a lot of investors are anticipating the next property cycle.

“The NSW figure is very strong, but in part this is because two thirds of first home buyers exited the market after the withdrawal of buyers' grants”, he added.

Along with unprecedented levels of investor interest, NSW saw the average mortgage size break through the $500k barrier for the first time ($505k).

This figure compares with average new home loans of $434k in the Northern Territory, $405k in WA, $386k in Victoria, $352k in Queensland and $319k in SA.

Enthusiasm for fixed home loans fell for the fourth month in a row, dropping now to 26.1 per cent of all new home loans.

Hewitt observed that this figure is still relatively high, suggesting that many borrowers are locking in part or all of their loans in anticipation of the rate cycle turning.