Ensure you never miss an issue of the
real estate business bulletin
Mum and dad buyers drive record investor activity

Mum and dad buyers drive record investor activity

by Staff Reporter 0 comments

Investor activity has reached record levels, according to the latest monthly statistics from a major mortgage aggregation group.

AFG announced that it processed $4 billion of loans in March, with $1.6 billion of those being mortgages taken out by investors.

The company, which is estimated to hold 11 per cent of Australia’s mortgage market, said the corresponding percentage figure of 39.6 per cent made this the highest proportion of investor activity in the seven years the company had been reporting mortgage data.

Investors accounted for 49 per cent of all new home loans in NSW, 37 per cent in Queensland and Victoria, and 32 per cent in South Australia and Western Australia.

AFG’s general manager of sales and operations, Mark Hewitt, said investors had been driving the market for most of the past 12 months.

“A vast majority of these are mum and dad investors taking advantage of the equity in their existing properties and the low rate environment to build their property portfolio,” he said.

“The fact that fixed-rate loans are now less popular than they have been for most of the past year suggests borrowers are also less concerned about the prospect of potential rate rises.”

Fixed-rate loans comprised 23.9 per cent of all mortgages, down from 25 per cent in February and a peak of 30.7 per cent in April 2013.

Loan-to-value ratios remained steady at 68 per cent, a level that has been maintained for much of the past year.

Mum and dad buyers drive record investor activity
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?