Investor lending takes a back seat

Options seem to be improving if you’re looking at securing a home loan, as analysis of recent figures shows owner-occupiers are dominating the market. There had previously been concerns that investors were taking more than their fair share, but the Real Estate Institute of Australia (REIA) believes this is no longer the case.

Cast your mind back to December 2014, when the Australian Prudential and Regulation Authority (APRA) announced it would be imposing restrictions on investors. The group explained that it would be clamping down on high-risk lending to make the market fairer for those buying Bentleigh real estate as their primary place of residence.

Over a year later, lending figures show these policies are working and that owner-occupiers are now “the dominant force” in levelling off the market, explains REIA president Neville Sanders.

“Despite an increase in the value of investment housing commitments in trend terms of 1.1 per cent, this follows nine months of falling investor lending in response to the increase in mortgage rates for investors and the strengthening of banks’ non-price lending terms,” confirmed Mr Sanders.

Are investors necessary in the property market?

Although lending conditions might be tighter, the REIA believes that investors do have an important role to play in the health of the Australian property market. It pointed out that the taxation arrangements affecting investors have helped to bring rents down.

Allowing negative gearing has also made a positive impression on the market, benefiting tenants of Bentleigh real estate and other parts of the country. The challenge now is making sure the market works in the favour of both owner-occupiers and investors, especially if the property sector is going to be able to thrive.

Make sure you speak to the team at Ray White Carnegie if you’re hoping to invest in this thriving suburb in the near future.