Credit provided to investors in Australian property is on the rise, according to new data from the Reserve Bank of Australia (RBA).
In June, the credit provided to property investors grew at a rate of 0.6 per cent. Over the last 12 months, RBA data shows the annual growth rate is now at 5.7 per cent. This is the highest seen since July 2011, when it was measured at 5.9 per cent.
The results for June also show the dominance investors have over owners in the property market as the growth rate for the latter was 0.3 per cent.
Investors and owners alike are rushing to buy property at the moment as mortgage interest cuts at the RBA have improved housing affordability.
Yet house prices remain out of reach for a number of Australians, meaning many are more inclined to rent a property than buy one. As a result, the market remains lucrative for investors.
Posted by Steve Douglas