Spring in the Air for Investors
A survey of the company’s mortgage brokers which asked ‘Do you anticipate an increase in inquiries from property investors during spring?’ found 86 per cent believed there would be a lift in activity.
Loan Market Corporate Spokesman Paul Smith said 40 per cent of the 217 brokers who responded forecast a moderate five to 10 per cent increase in inquiries.
He said 26 per cent tipped a slight increase of up to five per cent while 20 per cent predicted a significant rise of more than 10 per cent. Fourteen per cent said there would be no increase in activity.
“There are definite signs that spring is in the air for the real estate and home finance markets,” Mr Smith said.
“Spring is traditionally one of the busiest times of the year and recent home lending figures have been encouraging and point to a further increase in activity in the months ahead.”
Mr Smith said despite investors showing concern about the continuing debt crisis facing Europe, brokers had seen them as a growing force in the home finance market.
“The stable interest rate environment with the cash rate remaining near historical lows and generally soft property prices have been attracting investors,” he said.
“First time buyers have also been more active and some are targeting investment properties as their entry point to the property market.”
Do you anticipate an increase in inquiries from property investors during spring?
a) Slight 0-5% rise 26%
b) Moderate 5-10% increase 40%
c) Significant +10% increase 20%
d) No rise 14%