Data from a survey by comparison website, finder.com.au, found that despite having more cash to spend than those looking to make their first property purchase their primary residence, investor were finding it tougher to get on the property ladder.
Finder.com.au money expert, Michelle Hutchison, said first time buyer investors were struggling to access the property market, as lenders were pulling back from the investment market.
“First home buyers are among the lowest levels we’ve ever seen, currently at just over 15 per cent of all home loans financed, and it has been steadily declining for over a year,” she said.
“Government grants for first home buyers have declined while property prices have grown considerably over the past few years. And now with some lenders pulling back on their attractive rates to investors, first time buyer investors are the worst off.
“However, this is good news for first home buyer owner-occupiers who are the majority of first home buyers, as it could help alleviate the property market heat, which is being pushed by investors and refinancers. For instance, 42 percent of home loans financed in April 2015 were investment loans worth almost $13 billion. A decade ago, the proportion of investment loans was 34 per cent, worth just over $6 billion.”
The survey found that first time buyer investors were generally better off than those looking to become owner-occupiers, with more than half spending more than $500,000, compared to just over a third of owner-occupiers.
