Ensure you never miss an issue of the
real estate business bulletin
Investor finance growing faster than owner occupiers

Investor finance growing faster than owner occupiers

by Staff Reporter 0 comments

Investors are commanding an ever larger share of the property market, with growth in investor loans far outstripping loans to owner occupiers.


Over the past four years, the number of investment loans has increased by 37 per cent, according to data from Roy Morgan Research.

Meanwhile, owner-occupier financing increased by only four per cent.

In 2010, just under one million Australians owned an investment property, compared to 1.31 million in March 2014.

Nonetheless, owner occupiers continue to dominate overall, taking out 4.83 million loans in 2014.

The most investments were bought by the 35 to 64 year-old age group, which accounted for 78 per cent of the increase.

Overall, more than one in 10 Australians in these age groups now hold an investment.

Roy Morgan communications director Norman Morris said changes to senior benefits could encourage more people to consider investing in property.

“Going forward, government policy and the economic climate will play a major role in whether people choose to invest in the property market or take out a home loan,” he said.

“Older Australians will face the prospect of cuts to pensions, and with the proposal for the pension age being increased to 70, this could impact the investment property market.”

However, he warned younger people were increasingly finding themselves locked out of the market.

“Younger Australians may continue to find it difficult to enter the property market, either for investment or owner occupied, because for both types they are competing with more cashed-up, older, property buyers,” he said.

Investor finance growing faster than owner occupiers
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
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

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?