news

Investor crackdown dangerous for housing supply

By Staff Reporter
Hobart

Reduced levels of investor loans could prevent development projects going ahead, which would in turn damage supply levels according to an industry figure.

New ABS data reveals investment loans decreased over June while owner-occupier loans increased resulting in the proportion of total housing lending finance going to investors dropping to 41.6 per cent.

The Property Council of Australia’s executive director Nick Proud said this indicates that the lending restraints on investors may be starting to have an impact and that the owner-occupier market is gaining strength.

“Although these numbers are strong it is likely that a reduced appetite for lending to investors will start to impact on the number of homes that will proceed through to development,” Mr Proud said.

“What brings developments to market is a good mix of investors and owner-occupiers who can ensure that pre-sale commitments are met and projects go from planning to construction.”

Investment loans for new dwelling construction dropped by 5.4 per cent while owner-occupier loans increased 5.5 per cent in seasonal terms from May 2015 to June 2015, meaning the ‘good mix’ Mr Proud is stressing may become out of balance.

“Keeping a strong pipeline of new housing supply for owner-occupiers and renters alike is essential to take pressure off prices,” Mr Proud said.

Read more: 

More illegal investors ordered to sell up 

Two cities set for further growth, says RBA 

7 steps to building a massive property portfolio: Part 6 

Fixed rate loans becoming more popular 

Signs of recovery in WA 

What to do with your tax refund 

 

Investor crackdown dangerous for housing supply
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%