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Investors are jumping back on to the property ladder in New South Wales, according to new data.
AFG’s Monthly Mortgage Index found 49.5 per cent of all home loans processed in NSW last month were for investors.
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According to the index, this is the highest level of investor activity the company has ever recorded for any state.
However, investor participation across the nation was generally high.
Investors comprised 36.7 per cent of new home loans processed in Victoria, 35.8 per cent in Queensland, 32.9 per cent in South Australia and 28.4 per cent in WA.
August was a bumper month for AFG, which processed $3,613 million in finance – slightly more than the record-breaking figure of $3,608 million recorded in May this year.
AFG’s general manager of sales and operations, Mark Hewitt, said that with property prices starting to rise, and rates set to remain low for a while yet, many investors are anticipating the next stage of the property cycle.
“The NSW figure is very strong, but in part this is because two thirds of first home buyers exited the market after the withdrawal of buyers’ grants. A decisive result from next weekend’s election will almost certainly support the return of broader-based confidence across the country,” he said.
Along with unprecedented levels of investor interest, NSW saw the average mortgage size break through the $500,000 barrier for the first time, hitting $505,000.
