FHBs jostle with investors

FHBs jostle with investors

by 2 comments

First home buyers were largely pushed out of the September spring selling season as investors drove the number of home loans to a record high.

Analysis of mortgage approvals conducted over September by the Australian Finance Group found a fall in the number of approvals to first home buyers by nearly half. During September, first home buyers accounted for 8.4 per cent of new loans.

The figure normally comprises 15 per cent of all loans.

AFG general manager of operations Mark Hewitt said investors both onshore and overseas have created strong demand for Aussie properties during the previous month and as a result he is concerned about first home buyers getting a foot in the Aussie market.

“Historically, this segment has compromised around 15 per cent of all the loans we process, but in recent months this figure has fallen into single digits,” Mr Hewitt said.

“With countries like Canada making it more difficult for overseas residents to invest in property, very strong demand from investors can be expected this spring.”

The Canada-China bilateral investment treaty came into force on October 1 and provided specific obligations in how to treat foreign investors onshore.

The First Home Buyers Report released last week by listings provider realestateVIEW found affordability of local housing is playing a significant role in driving up the average age of first home buyers.

Over 35 per cent of respondents to the survey have not purchased a house because they believe prices are too high.

RealestateVIEW general manager Petra Sprekos said affordability will continue to be a long-term issue.

“The government was on the right track when it introduced stamp duty concessions for first home buyers, but the grants for buying a new home are far greater than for an established property,” Ms Sprekos said.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How effective are testimonials as a marketing tool?

Not effective at all
Somewhat effective
Very effective
They are the most effective tool there is
Do you have an industry update?