Securing a home loan on your next piece of real estate in Adelaide could be easier than it was several months ago, as figures show a rise in lending to owner occupiers. The Australian Bureau of Statistics (ABS) released its June data, which revealed that investors are stepping aside in favour of this group.
Over the course of the month, there was a 5.5 per cent rise in the value of loans granted for owner occupation. This compared to a 0.7 per cent fall in investment housing.
There was also an increase in the number of dwelling commitments for owner occupied housing, which were up 4.4 per cent in seasonally adjusted terms from May levels. If you have your eye on a new-build, however, the ABS figures show that lending for the purchase of new properties was down 0.8 per cent month on month.
Nick Proud, the executive director of residential at the Property Council of Australia, said the challenge will be to ensure that construction levels can be maintained. In order to achieve this, investor activity may need to be encouraged – something that APRA isn't too keen on at the moment.
"What brings developments to market is a good mix of investors and owner occupiers who can ensure that pre-sale commitments are met and projects go from planning to construction," commented Mr Proud.
"Keeping a strong pipeline of new housing supply for owner occupiers and renters alike is essential to take pressure of prices."
Whether you're an owner occupier or an investor, it can really pay off to have a real estate agent in Adelaide on your side. Not only can they help find your ideal property, but also assist with other areas of your purchase.
Make sure you get in touch with the Ray White Adelaide team for expert advice on making your move into this lucrative market.