Who is keeping the real estate industry humming along?
Despite tough economic times, the real estate industry has proven to be very resilient and continues to perform strongly, even in the middle of winter.
So, what is keeping the property sector strong?
Nick May, our General Manager of Corporate Services, said it all comes down to an interesting new trend.
Speaking on Channel 9 recently, Nick said low interest rates have brought a different type of borrower into the market.
“They are young, usually under 35 and often still living in the family home or perhaps with a mate,” said Nick.
This allows them to buy their first home and then, instead of living in it, they are choosing to rent it out and receive a good income in the process.
The trend was detected by Beyond Bank’s Product division after it analysed key home loan data from the past twelve months.
The results were remarkable.
Year on year, there has been a 50 percent growth in investment lending for April and a 70 percent increase in May.
“This is pretty significant and shows that a whole new buyer is entering the property market,” said Nick.
As a key home lender, Beyond Bank predicts the trend is here to stay even if it does mean growing competition for houses in the lower price bracket.
“It’s allowing first home buyers to get their foot into real estate and Beyond Bank is always happy to support young people making wise and sound financial decisions,” said Nick.