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Mortgages to investors see high...

Mortgages to investors see high growth

Lending to property investors is growing at the fastest rate since 2011.

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

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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