 Property investors back in the market
Investors have overtaken first home buyers at the biggest sector of homebuyers. Property investors are flooding back into the market as interest rates remain low and property becomes more appealing than the stock market.
As the boost to the first home owner's grant winds down, demand from first home buyers has faltered.
"People who were serious about getting the grant made sure they bought well ahead of June 30, when it was originally scheduled to expire," Lisa Montgomery, of Resi Home Loans, says.
Ms Montgomery says it's now property investors coming back to the market as trust in stocks weakens and property is seen as safer.
However, while property has always been a good, long-term investment, landlords must understand it is not a way to make quick money.
Property prices have fallen from their 2006 peak, and while the lower end of the market has remained strong due the first homebuyers demand, there is no guarantee growth will be as strong when the first home owners grant ends later this year.
And with financial markets expecting the cash rate to be increased early in 2010 and to hit 3.4 per cent in a year's time, investors must plan ahead for any rises to their mortgage rate.
And rental yields may not be what they once were, with a recent Australian Property Monitors study finding worried tenants were not willing to accept rising rents and instead look for cheaper properties to rent.
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