Wed Sep 18 05:23:48 UTC 2024: ## Investor Mortgages Surge in Australia, Outpacing Owner-Occupier Loans Fivefold
**Sydney, Australia** – A new report from Money.com reveals a stark disparity in Australia’s housing market, with investor mortgages skyrocketing at five times the rate of loans given to owner-occupiers. The data highlights a growing concern that investors are buying up properties at an alarming pace, making it increasingly difficult for first-time homebuyers and owner-occupiers to enter the market.
Despite high interest rates and inflation, the number of home loans issued in Australia has actually increased by 7% year-on-year. However, this growth is largely driven by investor loans, which have seen a 15% increase over the past year. In contrast, owner-occupier loans have grown by a mere 3%, with this increase primarily attributed to refinancing existing mortgages.
The report further reveals that investor loan numbers have outpaced both internal refinancing loans and loans for existing properties. This trend is most pronounced in Western Australia, where investors are snapping up homes at the fastest rate despite having the third-lowest loan size.
“The investor loan market continues to be the primary growth area for new loans, with competition intensifying further in July 2024 as more lenders target investors,” the Money.com analysis states.
These findings have sparked concern from housing critics, with Victorian Senate candidate Jordan van den Lamb accusing investors of “hoarding” properties. “The data shows we’ve created a system that makes it easier for hoarders (investors) to own homes they will never live in, than it is to buy a home in which you actually wish to live,” he said.
Van den Lamb, known for his website S**tRentals.org which exposes substandard rental properties, argues that the current system disproportionately favors investors and creates an unfair playing field for first-time homebuyers and those seeking to live in their own homes.
“We need to make it harder for investors to purchase their second, third, fourth and fiftieth homes while there are First Nations folks that cannot manage to find a place to live in their own country,” he stated.
Despite claims of housing shortages, van den Lamb asserts that Australia has enough homes to house everyone. “Homes in fact do not disappear once they are sold,” he said, suggesting that the focus should be on ensuring equitable access to housing rather than simply increasing the supply of properties.
The report highlights a growing concern about the accessibility of housing in Australia, particularly for first-time homebuyers and those struggling to secure affordable rentals. The issue is likely to become a central point of debate in the upcoming federal election.
First Piper 