Investor rush noted by comparison website

By BN | 12/11/2009 8:20:00 AM | 0 comments

Research carried out by comparison website HelpMeChoose.com.au has confirmed that investors are indeed rushing back into the market.

An October study of over 5,000 Australians actively researching finance found that investor enquiries currently accountfor 12% of the market, "their highest point so far this year".

It also found the number of people enquiring about interest-only loans rose in October, consistent with the increase in investor demand.

"Interest-only loans are almost exclusively used by investors, so again this supports our view that investors are returning to the market in large numbers," said CEO Adir Shiffman.

As a result of these findings, Shiffman said investor activity would rise significantly in the coming two months, though the party for first home buyers is now definitely over.

"First home buyers are no longer the driving force, and in fact that segment of the market will probably under-perform over the next six to 12 months," he said, attributing this decline to much of first home buyer activity being "brought forward" due to the government boost.

The first six months of next year are also expected to be weaker as a result in the first home buyers sector.

Related stories & videos:

Property investors shun home rebate - The NSW government's stamp duty concession, introduced in July as part of an effort to boost the region's struggling new housing sector, has failed to attract investors in significant numbers.

 Broker news TV: Preparing for the property investment boom - Property investment has become an increasingly popular avenue for wealth creation. In light of this, it is essential that brokers are prepared to meet investor client needs, with a complete bank of knowledge surrounding the property investment process.

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