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The return of the first home buyer

clock icon August 10, 2017

New data shows the proportion of new entrants taking out a mortgage in June was 15 per cent, up from 14 per cent in May and the highest in two-and-a-half years.

“First home buyers are fighting their way back into the market, clearly assisted by the new restriction on loans for investors, that is starting have a real effect,” Treasurer Scott Morrison said in a Facebook post.

According to the Real Estate Institute of Australia (REIA), finance approvals for investor housing trend downward. In December 2016, investors accounted for 49.3 per cent of all housing finance – by June 2017 this had fallen to just 45.8 per cent.

“In trend terms decreases were recorded in New South Wales, South Australia, Western Australia, Tasmania and the Northern Territory with South Australia having the largest decrease of 1.2 per cent. Increases were recorded in Queensland, Victoria and the Australian Capital Territory which had the largest increase of 1.0 per cent.

“The June figures show that the market is adjusting with owner occupiers and first home buyers returning to the market as investor activity decreases in response to the actions of the regulators and banks to limit bank lending to dampen investor demand for property,” Mr Gunning concluded.

Scott Durrant from Successful Ways says that he expects to see strong home loan demand over the coming months due to interest rates being so low.

To learn how to take advantage of the new stamp duty discounts and get into the property market, attend the Successful Ways First Home Buyers Course. Get 50% off with promo code SW50BLG
Book a course now!

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