If you’re thinking of investing in property, you’re not the only one!

The latest figures from the Australian Bureau of Statistics (ABS) show for July 2021, the value of new loan commitments to investors rose 1.8%, after a rise of 0.7% in the previous month.

In July 2021 in seasonally adjusted terms, the value of external refinancing:

• for total housing rose 6.0% to reach an all-time high of $17.2b
• for owner-occupier housing rose 4.9%
• for investor housing rose 8.3%

This level is the highest seen since the all-time high in April 2015.

With continued uncertainty around financial markets, together with low borrowing costs, ongoing capital growth and attractive rental yields, it’s hardly surprising more people are looking towards property as an investment opportunity.

Rental affordability

Furthermore, according to the Real Estate Institute of Australia (REIA), rental affordability is improving; its latest quarterly Housing Affordability report found rental affordability rose by 0.3 percentage points of the June quarter.

REIA President, Adrian Kelly said the proportion of income required for rent across the nation has decreased to 22.8 per cent. “Over the quarter, rental affordability improved in New South Wales, Victoria and South Australia,” he said.

This is despite the prolific media headlines about availability and cost of private rentals. Mr Kelly pointed out affordability of rent to median income remains by and large constant.

According to Mr Kelly, house sales continued to record premiums over the quarter and this was reflected in affordability. “Income required to meet loan repayments increased to 35.4 per cent or 2.1 percentage points and increased 1.9 percentage points compared to the same quarter of 2020,” he said. He also said New South Wales had the largest increase of home loans at 11.1 per cent, which was $70,311 higher than the last quarter.

Mr Kelly believed with sustained low interest rate environments, there are still opportunities where it is cheaper to rent than buy.

This is all good news for anyone thinking of investing in property.

Our records show we consistently have low rental vacancy rates and we have a great reputation for finding the perfect tenant who not only pays the rent on time and takes care of the property, but often remains in the property for several years.

We’ve helped thousands of people realise their financial dreams through property and we’d like to help you!

Get in touch and see how our property management services can make your life easier and free you up to do more of the things you want to do.

Simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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