Investor borrowing jumps in latest figures

Property investor activity is close to eight-year highs, the latest data from the Australian Bureau of Statistics has confirmed. Investors took out 37.7% of all new home loans in the June quarter, well above the five-year average of 32.7%.

PropTrack senior economist Angus Moore said the number of new loans going to investors had increased steadily over the past 18 months, following a quiet period from mid-2022 (when interest rates started rising) and into 2023.

“Activity from non-investors has picked up too, but not to the same extent. What this means is, investors are making up a very substantial share of new lending – close to as high as we’ve seen in a couple decades in some of the smaller states, and nationally about the highest since 2017,” he said.

Depending on your situation, the potential benefits of property investing may include:

• Rental income – providing a steady cash flow that can help cover loan repayments.
• Capital growth – offering potential for long-term gains as property values increase.
• Tax deductions – delivering negative gearing and depreciation benefits.
• Portfolio diversification – offsetting the shares you might have in your superannuation.
• Leverage potential – controlling a large asset with a relatively small upfront deposit.