Investors cautious about buying property
Despite recent research suggesting now is a good time to invest, it seems potential investors are scared to take the plunge.
According to RFi’s latest Australian Mortgages Market Wrap, the total value of lending commitments (owner-occupied and investment housing) was down 0.5 per cent in year-on-year terms in June 2011.
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Lending commitments for investment housing saw a large fall over the year, decreasing by 12.3 per cent between June 2010 and June 2011.
RFi director Alan Shields said the increased global uncertainty has seemingly led to a subdued appetite for credit in 2011,with investment lending commitments falling 4.4 per cent in June 2011 to $6,059m.
"When we talk to potential investors, there are fewer people than ever saying now is a good time to invest. That said, the proportion of people saying they will purchase and investment property within the next 12 months remains at long term averages - around 10 per cent," Mr Shields said.
