First home buyers may be at the forefront of most brokers’ marketing activities but an upswing in investor activity may not be far away.
Angie Zigomanis, senior analyst of residential property at BIS Shrapnel, told Mortgage Business that the fundamentals for property investment were the best in years.
“Property prices have gone backwards in some instances and have been stagnant in others. This, combined with considerably lower interest rates, means purchasing is a lot more affordable than it’s been in some time.”
“Rents are continuing to increase as population growth remains strong and new building if anything is declining,” he said.
Mr Zigomanis also pointed out that positive gearing prospects were increasing – opportunities not seen in the Sydney and Melbourne markets for around ten years.
“The amount investors will have to dip into their own pockets to cover borrowing costs is diminishing,” Mr Zigomanis said.
While first home buyers have been squarely in the spotlight in recent months a recent Mortgage Business straw poll revealed 30 per cent of brokers have already seen an increase in investor business.
While the market as a whole is yet to surge investor interest is certainly on the rise, according to Eta Nagidai of Flair 4 Finance in Melbourne.
“People have been waiting for the market to present itself and those opportunities are now waiting to be grasped,” she told Mortgage Business.
“I think we’ll definitely see investor activity increase.”
Ms Nagidai said a lot of business was in the pipeline with many investors arranging pre-approvals – an indication that investors are preparing to make a move later in the year.
Mr Zigomanis echoed similar sentiments: “In terms of timing there is still a lot of uncertainty out there."
“While investor business will certainly start to trickle through, a greater rush to property will probably come later in the year and into 2010,” he said.
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