Is now the right time to consider buying an investment property? Let's look at the facts.

September 16, 2014
Lexie Wilkins

Welcome to our first Blog from the Mortgage Choice team….Our aim is to update you regularly with market data and interesting facts to help you achieve your financial objectives.   

Australian investment housing lending…latest stats and trends

With interest rates remaining low, the number of property investors in the real estate market has grown significantly in the last year. If you are interested in investing in property there is a lot to consider….financially and demographically.

Last week the Australian Bureau of Statistics released the July 2014 housing Finance data.  Interestingly, as well as a 0.3% rise in owner occupying housing finance, investment lending increased by 6.8% versus June.  Year on year to the end of July, investment lending has increased a whopping 29.6% nationally. 

According to Tim Lawless from RP Data, in the current Australian housing environment, it is subsequent purchasers and investors who are occupying the majority of housing demand.  WA leads the nation in population growth and hence despite the mining down turn, demand for housing remains high.


What should you consider if you are interested in property investing?

Ben Lamers, Senior Property Advisor from the Hegney Property Group is quick to remind us of the need to exercise caution and patience if considering investing in property.  It is important to consider that investing can be a long term commitment.  

Do your research too…..WA is changing rapidly and our style of living is changing.  The cost of living in WA is affecting the cost of maintaining a larger dwelling and hence there is a trend towards:


  • compact blocks
  • an increasing number of single person households
  • smaller family units
  • housing near infrastructure such as public transport and schools


The mining slowdown has resulted in a decrease in the median rental in WA vs 2013 but the Perth overall median house and unit rental still remains 3rd in Australia at $460 per week behind Darwin and Sydney.  


Mark and Herman suggest being cautious of promises of guaranteed rental income by property investment companies and perhaps consider utilising the skills of a good buying agent to assist you to locate the best suburbs for capital growth.


Can you afford an investment property?

Mark and Herman also have suggestions of what to consider when wanting to purchase this type of property:

  • Always ask yourself “Could I/we afford to hold on to this property if interest rates rise quickly by say 2% in a short period of time?”
  • Know how much you can borrow and allowing a buffer for any potential tenant free periods.
  • Start off with an overall financial objective in place in order to help guide decisions along the way.


Doing your sums is essential but can be complicated!  That’s where Mark and Herman from our team can help out…

Our Mortgage Choice software allows us to search for the best home investment loan to meet your needs, from around 27 different lenders and hundreds of different home loan products. 


Need a hand to navigate the investment home loan maze?

Give Herman or Mark a call on 92871030 and we will meet with you at a time and day that suits you to discuss your financial objectives.  Otherwise email Herman at or Mark at



Posted in: Property investment

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