Prestige Property Gains Momentum
By Sam White, Executive Chairman
Interest in the higher end of the property has been increasing over the past 12 months, with Loan Market recording an increase of 30 per cent in home loan applications for property purchases over $800,000.
Home loan applications for properties over $3 million the traditional minimum for a 'prestige' property - have also increased, according to Loan Market mortgage brokers working with buyers at the higher end of the property market.
A very quiet 2008 in this property segment has opened the door for buyers with financial stability to find excellent properties at attractive prices, particularly as interest rates remain below average.
As this market overall tends to perform very well, those who are financially able to step up into this market stand to make a good return over the long term.
Buyers are still recognising the role interest rate rises have to play and are borrowing with an eye to the future. And for those with substantial existing equity in property, home loan options are varied and competitive.
Anyone thinking of purchasing a prestige property should seek expert advice on how much they can borrow as there is often specific credit criteria applied to high value loans.