Positive news through this week from The Australian showing that housing investors are making a comeback with stronger borrowing that bodes well for house prices, particularly while the Reserve Bank continues to cut interest rates
Investor loans jumped 5.7 per cent in August, the biggest month-on-month rise in three years. Owner-occupier loans rose 1.9 per cent, with loans for established property up 2.1 per cent and new property up 1.1 per cent. Renovation loans jumped 4.5 per cent and first-home loans surged 5.9 per cent, reaching a decade high 19.6 per cent share of loans. The total value of loans rose 2.9 per cent.
Home loans have surged 12 per cent in the past three months, boosting house prices at annualised rates of about 10 per cent in the past two months.
Talking about rates…
The Australian also reports that the average of the five lowest variable rate home loans on the market is 2.77 per cent – a full percentage point below the 3.77 per cent discounted standard variable rate the big four banks offer.
Since April 2016, the RBA has cut the cash rate five times — from 2 per cent to 0.75 per cent — and the average discounted standard variable home-loan rate of the National Australia Bank, Commonwealth, ANZ and Westpac has fallen 0.97 percentage points.
For over 25 years now, Property Club have been assisting Club members to get the best interest rate they can be on, saving them thousands every year on their loans!
Make contact with your Property Mentor or firstname.lastname@example.org for further information, so you can get the right properties in the right areas, best selected for capital growth!
Troy Gunasekera | National Manager