Atlas Market Insights

How has the property investment market been impacted in the last 12 months? Mortgage demand from investors has dropped off substantially across Australia. It usually sits at a third of all mortgage approvals but is now at 23% nationally. Investors are sitting on the fence at the moment. Right now, you would be lucky to find an investment apartment giving you 3% gross rental yield which is not that attractive. It is likely that investors are also putting their funds into improving their primary residence. Especially as work-from-home arrangements have increased in popularity, homeowners are placing more importance on their family home. And this is a great idea as it’s one of the only tax-free wealth generation strategies available in Australia, as there are capital gains exemptions on primary residences. Although property investment is not as attractive as usual, it is still holding far stronger than other investments such as stocks, which have been volatile throughout last year. Australians are still keen to invest their money in bricks and mortar, something tangible. It’s far safer and more predictable than other investments. What is happening with first home buyers? First home buyers are an extremely active segment of the market right now. With assistance from the government, this sector has never been more empowered to take out a home loan. Shore Financial mostly sees first home buyers who have assistance from the government or even another source, sometimes with a third party acting as a loan guarantor. These people often co-sign as a couple and look for houses over units. 16