Real estate investors drive price up down under
Recent reports suggest that the overheated Australian property market is beginning to cool but that is not deterring buyers who are continuing to purchase investment properties.
According to official government figures investment lending across the Australian mortgage sector is up by 30 per cent in the last twelve months. The first three months of 2010 show that lending to owner occupiers dropped by ten per cent but an increase of 11 per cent was recorded against investment buyers.
Australia is now considered one of the top performing residential real estate markets across the globe and investors have been attracted by the price surges enjoyed during the last twelve months. The dismal performance of the stock markets has convinced many speculators to put their cash in to bricks and mortar for a safer return.
Scores of real estate experts believe the current price growth is unsustainable especially now that interest rates are beginning to rise and so predict a much less steep incline in prices for the remainder or the year.