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Real Estate & Business

14 July, 2021

Value of new house loan commitments rises

MACKAY investment property owners looking to cash in on the recent market surge are in for more good news if figures released by the Australian Bureau of Statistics are anything to go by. The May 2021 Lending to Households and Business figures show the value of new loan commitments for housing has increased again with investors back in force.


MACKAY investment property owners looking to cash in on the recent market surge are in for more good news if figures released by the Australian Bureau of Statistics are anything to go by.

The May 2021 Lending to Households and Business figures show the value of new loan commitments for housing has increased again with investors back in force.

Real Estate Institute of Australia president Adrian Kelly said the statistics showed new housing loan commitments rose by 4.9 per cent in May this year to a new high of $32.6billion.

Mr Kelly said this had been largely driven by investor housing loan commitments.

“The value of new loan commitments for investor housing rose 13.3 percent to $9.1 billion in Mackay which was the highest level since April 2015,” he said.

“The value of investor loan commitments rose 116 percent in the year to May 2021 after falling to a 20-year low in May 2020.

“Investor loans equated to 28 percent of the total value of housing local commitments in May compared to 46 per cent in 2015.”

Mr Kelly said the results reflected the very strong interest market growth has generated in the past year.

“Investors and first home buyers alike are diving into the market with the latter taking advantage of the current government incentives.”

He cautioned that lenders would continue to remain in high alert to potential lending restrictions in the future.

“APRA has consistently said their true north for changes to current policy settings would be household debt to income with banks showing signs of responding to this in changing some of their products on offer.

“Despite these strong lending results for investors, feedback on the ground from agents remains that many investors are taking the current high prices to offload investment in light of extensive reforms to residential tenancy laws in some jurisdictions.”


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