INVESTOR LENDING JUMPS SHARPLY

Investor activity is surging – a sign that many investors feel now is a good time to enter the market.

New loan commitments to property investors rose 12.3% in the September quarter compared to June, according to the Australian Bureau of Statistics. This sharp increase suggests many investors believe the market is heading in a favourable direction.

Why investors are out in force

Vacancy rates are extremely low. Tight supply is giving investors confidence their properties will stay occupied.

Rents are rising faster than inflation. Rental income is growing in real terms, strengthening potential yields.

Property prices are accelerating. Many investors want to buy before values push higher.

Population growth remains strong. More people needing homes adds pressure to the rental market.

Tax breaks may be available. Potential deductions for interest, maintenance and depreciation can improve the overall after-tax return.

What this means for you

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