The current boom is being fuelled by speculative investors, like the last really worrying cycle in the early 2000s, with investor credit expanding at a 10 per cent annualised clip. Investors now account for about 45 per cent of all new home loans, which is notably more than the rental sector’s one-third share of the housing stock. Unprecedented investor activity is driving a surge in theoretically riskier ‘interest-only’ loans that involve no repayments of the underlying debt. Today, these interest-only products make up around 30 per cent of new mortgages, and roughly 60 per cent of new investment loans. There are now very clear signs that the housing market may be peaking. afr/p/blogs/christopher_joye/why_the_rba_should_raise_rates_5v14tGy95jqBZBZ5XmbYFM
Posted on: Wed, 24 Sep 2014 05:39:06 +0000
Trending Topics
Recently Viewed Topics
© 2015