Investors show market return

A net 24% of mortgage advisers say they are receiving more enquiries from investors. Alexander says this is the same reading as last month and shows the surge in investor enquiry last month was not a statistical blip.

“The situation is now markedly different from almost all other months since early-2021 when tax rules for investors changed.”

Advisers’ comments about bank lending to investors include: Not much change in this area - everything seems to be hinging on the election; tweaks to the shading of the rental income has declined, however, the actual rates and insurance expenses, in most cases, exceed the shaded allowance when a percentage of the rent was considered; no changes. 65% LVR for existing investment properties, 80% LVR new builds, 80% overall LVR for owner occupied and Investment property; inquiries are steady, however, once investors do the numbers as part of the application process and speak with their accountant, they no longer wish to proceed as they cannot make the numbers work or they are not willing to top-up the difference.

In the first home buyer market, a net 59% of the 75 survey respondents say they are receiving more enquiries from first home buyers. Alexander says this indicates the extent to which young buyers are driving the upturn in the housing market is not easing and if anything may be strengthening.