DECREASING RESIDENTIAL PROPERTY INVESTMENT

 Australia is facing a notable decline in residential property investment, raising alarms about future rental and housing shortages.

Australian Bureau of Statistics revealed a 4.5% decline in investment loans for residential dwellings in the December quarter, the first drop since early 2023.

Conversely, new home loans, excluding refinancing, increased for the third consecutive quarter, indicating robust activity among owner-occupiers but a retreat in investor participation.

There are real concerns about the increasing imbalance in the housing market, noting that investors play a crucial role in maintaining the availability of rental properties.

The decline in new investment loans is a troubling sign for the future of the housing supply. (not being funny here but seriously what exactly has the Government done to encourage investors to stop selling or buying more absolutely SFA) 

With the vacancy rates already at record lows in many parts of the country, a continued drop in investment with further strain the rental market, driving up the rents and exacerbating affordability which is challenging for tenants.

A slight 0.4% decrease in the new loan commitments for dwellings this quarter, while the value of these loans increased by 1.4%.

Borrowers are opting for larger loans despite the higher interest rates.

For a while now the housing market has shown such positive trends. The good news is there was an increase in the first home buyers, the increase does not alleviate border supply constraints. (hate to say this but "parents or grandparents" have been propping up the first home buyers)

Without the sufficient investor participation, the Country risks further undersupply in the rental market, making housing affordability an even great challenge.

To address the downturn in investor lending it's been called for policy interventions aimed specifically at encouraging investment in residential property.

Policymakers need to address the barriers discouraging investors, such as rising costs, tax settings and regulatory uncertainty.

The current government reaffirmed in Question time that it intends to maintain the current negative gearing policies if re-elected. (hate to say this but it would have been the death of Labour if they didn't)

In my humble opinion this current Government should have had their eye on the ball years ago and be planning for more smaller houses to house 1-2 people as there seems to be a lot of singles around that need homes. Stop giving trillions of dollars away and start looking at your own back yard and fix our issues before embarking on trying to fix other Countries. Does my head in to see people suffering in Australia.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO !!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!