The increase in lending to investors
and owner-occupiers is good news, and
a sure sign of the confidence Australians
have in the property market.
In May we saw a 1.9 per cent increase
in the number of owner-occupier loans,
which is the first increase in the past
8 months. Loans to property investors
rose 2.6 per cent in value, meaning that
lending to investors has increased by
a whopping 35 per cent since early 2009.
The value of new lending to investors
in May 2010 reached $7.66 billion, which
is the highest figure for a single month
since January 2008.
This is a clear sign that the confidence
Australian investors have in property
is gaining ground, which is no surprise,
given the topsy turvy nature of the share
market over this period.
The $7.66 billion invested in May is
the end result of a process that lasts
many months, and where investors will
have asked themselves questions like:
- Is this a good time to invest in
property?
- Is the property market going to keep
increasing in value?
- Will I make a good return in the
long term?
- Should I invest in a house or a unit?
- Where should I invest?
- How will I secure a loan?
- In whose name should I register the
property?
- Will I find tenants?
- Will I look back on this as a good
decision in years to come?
Are these the kind of questions that
you have been asking yourself? Many of
the people we speak to each month ask
themselves exactly these sorts of questions.
They realise that they need to invest
to create wealth for the future, but with
property being such a big investment,
some people struggle to come to a positive
decision, even though they have the equity
in their family home needed for a deposit.
Does this sound familiar to you? Is making
a positive decision to invest in property
a tough one for you, and are you worried
about possibly making a mistake?
In our view, the huge and growing amounts
of money being invested in investment
property each month is a sure sign that
this is a sound strategy.
We all know the reasons for property
investment:
- The shortage of properties to meet
our growing population needs
- The stability and growth of property
values over time
- The need to invest for a comfortable
retirement
- The beauty of the investment property
concept in Australia, with tax concessions
and tenants rentals paying for most
of the costs.
$7.66 billion is a huge number, and behind
all those dollars being ploughed into
the investment property market every month,
are people just like you and me.
Are you able to take heart from the confidence
that investors have in the property market,
and consider taking the plunge yourself?
Will your investment dollars get added
to the total numbers in coming months?
Will you join those who are laying down
solid investments in bricks and mortar
for the future?
As the saying goes, "success leaves
clues." We think the size of these
monthly investments in property is a very
big clue indeed, and easy to follow as
well. All it requires is a positive approach,
and a decision.
If you would like to learn more and discuss
how McCarthy Group can assist you, click
here. |
