The surge in investor-owned property has been driven by multiple factors that are denying many ordinary Aussies a chance to enter the market when the time is ripe, says one real estate director.
Coronis Realty managing director Andrew Coronis said everyday Australians and first home buyers are being priced out of the property market due to adverse government policy and growing investor demand.
He said almost half (45 per cent) of all bank loan approvals in October last year were granted to investors, and this trend is predicted to grow in the face of record low interest rates and favourable financial policies geared towards investors.
Mr Coronis said this combination of factors was creating a market monopolised by landlords and renters.
“Home ownership has fallen significantly over the last two decades, with the largest drop of 11 per cent among 35- to 44-year-olds, showing more and more people are resorting to renting,” Mr Coronis said.
“By all accounts, buying a house should be easier than ever before, considering deposits have dropped from 30 per cent to around five per cent and interest rates are at a record low for the 16th month in a row.
“Yet government policies like stamp duty, negative gearing and changes to the First Home Owner Grant have made it even harder for low-income earners and young Australians to get their foot in the door.”