Wednesday, December 14, 2011

Australian Real Estate Investor Borrowing Falling Faster than Owner-Occupier

Investor borrowing fell 5.5% between October and September while owner-occupied fell 1.2%.

30% of all mortgages are on investor properties.

1.2 million out of 1.7 million investors fail to cover costs with rents.

Property Dreams Strain Australian Market
Compared with live-in homeowners, landlords are more likely to put properties up for sale when things go wrong—a surge in properties for sale could cause disarray in the broader market.


jesse said...

Nothing lower interest rates won't solve!

GG said...

Only if the foreign appetite for aussie bonds continues. Which it very well might. Otherwise there goes 30% of mortgage funding.