We’ve discussed the current state of supply and demand for residential housing across Australia and now it seems there are some tentative signs that investors are coming through and beginning to fund new construction projects.
In February of 2010, the number of property investors applying for mortgage loans was at the highest level seen in the past two decades, according to the Australian Finance Group.
An increase in real estate prices combined with the shortage of supply is fuelling the interest in property investments. As well, the opportunity to achieve high yields through fully occupied rentals, both residential and commercial, is certainly a factor.
Conversely, first time homebuyer numbers are dropping. It is speculated that higher interest rates are to blame.
In another piece of good news, RAMS Home Loans has teamed up with Residex to provide additional information that should help property investors make more informed purchase decisions. The mortgage writer and real estate statistics provider are now making detailed reports available that include the median sales price, growth trends, median rent, and a current listing of available properties on the market.
This will certainly help realtors provide better service to their customers via informed advice, more accurate financing requirements, and a quick way to determine which locality will be best for a particular investment type.
One can surmise that investors will continue to drive the real estate market for some time to come. Additional supply is necessary and it is expected that property investors will lead the way toward providing it.
Have you been waiting to invest in Australian real estate hoping prices will decrease?
It may be time to rethink that strategy. Even if you do not have the necessary funding to invest in a large new construction project, consider an existing rental property, particularly in major urban areas where the need is great.