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    Wednesday, October 15, 2014
    Highlights of Darlinghurst Darlinghurst is an inner city suburb of Sydney.  Close to Sydney’s Central Business District, it is one of the m...
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    Thursday, September 25, 2014
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    Wednesday, July 02, 2014
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    Thursday, June 12, 2014
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  • DIY tips to prepare your house for sale | Real Estate Blog – Niche Portfolio
    Monday, June 02, 2014
    Do you want your home to stand out from your competitors?  If you are serious about putting up your home for sale, it is vitally important that y...
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  • Rental home hunting? Follow these 5 simple tips for a smooth transition | Real Estate Blog – Niche Portfolio
    Wednesday, May 14, 2014
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  • Escape into your own private oasis | Real Estate Blog – Niche Portfolio
    Wednesday, April 30, 2014
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  • Property prices on the rise with Sydney’s property boom | Real Estate Blog – Niche Portfolio
    Monday, March 17, 2014
    With interest rates at a record low, and high demand for limited housing stock, Sydney’s property market is set to see an increase in property d...
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  • Top Tips for Buying a Rental Property | Real Estate Blog – Niche Portfolio
    Friday, February 28, 2014
    Buying a rental property can be a very financially rewarding decision. However there’s no denying that it involves a lot of research beforehand....
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  • Sydney property and property investment news | Real Estate Blog – Niche Portfolio
    Monday, January 20, 2014
    The increase is the biggest jump seen since late August 2010, and follows a series of country-wide falls in property values in the two preceding years...
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Investors Drawn to Property as Interest Rates Fall | Real Estate Blog – Niche Portfolio

Monday, September 23, 2013

Consistently lower interest rates mean that investors are dashing to the housing market. The Australian Finance Group (AFG) mortgage brokers have reported that nearly half of their mortgages written in NSW last month were for property investors, who accounted for 49.5% of its mortgages, up from 45.9% in July and 44.7% in August. AFG noted that this is “the highest level of investor activity the company has ever recorded for any state.”

 

Although Sydney house prices are up 7% since last year’s low, the number of new home loans rose by 2.4% over the month to July to 51,400, the sixth monthly rise. The share of new loans taken out by investors rose to 36.4%, the highest level in a decade.

 

Having tracked the activity of AFG’s internal figures for about fifteen years, Mark Hewitt, the general manager of sales and operations for AFG asserted that the mortgage brokers’ numbers are the latest sign that property investors are playing a key role in driving the recovery of the housing market.

 

Both ABS figures and figures from the Reserve Bank demonstrate a stronger growth in lending to investors across the economy. ABS figures showed that loans for investors account for 35% of new housing finance commitments in June, which is up from 33.5% that time last year. First home buyers only made up 15.1% of housing commitments in June. The Reserve Bank showed that credit to housing investors has been growing at an annual pace of 5.8%, the fastest rate in two years, compared with the 4.1% annual growth in owner occupied housing. As JPMorgan economist, Tom Kennedy explains, “the trend clearly has been towards more investment activity than owner-occupied activity.”

 

The fall in interest rates and strong housing market mean that now is a good time to invest in property. As the founder of wealth management company, Yellow Brick Road, Mark Bouris has emphasized low interest rates present a good opportunity, “from now to maybe five years’ time, house prices will go up quite a lot and I think it’s a good time to take the opportunity to invest in real estate.”