Investment in property is witnessing a resurgence, with one-third of new home loans attributed to property investors. Unveiling the factors fuelling this surge and its implications for the 2024 property market landscape in Australia, including Townsville, Queensland, Brisbane, and the Gold Coast.
The resurgence of property investors is undeniable, making a significant impact on the market.
Recent data from the ABS reveals that in December 2023, banks disbursed over $26 billion in new home loans, with a staggering $9.5 billion directed towards property investors, constituting 36.2% of all housing loans. This marks the highest market share for property investors since mid-2017 and a notable increase from December 2020, when investors accounted for just 23.6% of mortgages.
What drives the renewed interest in investment properties?
Investing in property holds multifaceted appeal for individuals. Apart from serving as an additional income stream, investment properties currently offer attractive rental yields, with some suburbs boasting yields as high as 9%, according to PropTrack data.
Additionally, investors anticipate capital appreciation over time, supported by findings from CoreLogic indicating that 93.5% of property resales in the third quarter of 2023 yielded a profit, with a median gain of $298,000.
Projections by ANZ Bank suggest a further 6% increase in home values in 2024, enhancing the allure of property investment. Coupled with record-low rental vacancy rates of 1.1% in January 2024, investors are experiencing strong tenant demand, bolstering cash flow.
What impact could the resurgence of investors have on the market?
On an individual level, investing in property presents an opportunity for long-term financial security. The ABS acknowledges that rising household wealth in Australia especially in Townsville, Queensland is bolstered by sustained growth in house prices despite higher interest rates.
Furthermore, PropTrack highlights that increased investor activity bodes well for the overall market health, stimulating new construction projects and fostering market growth.
In summary, the benefits of a robust investor presence extend beyond individual gains, positively impacting market dynamics.
Considering an investment property?
If you're contemplating entering the property investment market or expanding your existing portfolio, reach out to us today to explore your options for investment loans.
Our team in Townsville, Queensland can assist you in evaluating your equity leverage potential and overall borrowing capacity, guiding you towards securing a competitive mortgage from our diverse panel of lenders.
With our support, you can focus on identifying the perfect investment property for your portfolio.
To learn more, contact Premium Finance Group Australia at 1800 413 635 or email us at finance@pfga.com.au
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