Growth in property investor loans hits post-GFC high

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PM is one of the grand institutions of Australian public broadcasting. The program celebrates its 40th anniversary on July 7, 2009 – four decades of reporting Australia and the world.

Sydney and Melbourne accounted for most of the country’s house price growth in the past year. In Melbourne, buyers agent and property commentator Bryce Holdaway has welcomed last week’s comments from the RBA. In this broadcast, Bryce Holdaway is asked by Pat McGrath to give his opinion. Here’s part of the transcript:

“MARK COLVIN: The hard numbers are backing up warnings from the Reserve Bank that investors are pushing up house prices. Official figures released today show that banks are increasing their lending to landlords at the fastest rate since the start of the global financial crisis.Mortgage brokers and financial planners say investor demand for property is the strongest they’ve seen in years.

Business reporter Pat McGrath.

PAT MCGRATH: Today’s figures from the Reserve Bank show the annual growth rate for new property investor loans hit 9.2 per cent in August. That’s almost double the growth rate for people who want to live the house they’ve bought, and for Michael Sloan, the founder of the Sydney property advisory firm The Successful Investor, that is being been reflected in a big increase in the number of people coming through his door.PM covers a broad spectrum of issues relevant to all sections of Australia’s geographically and culturally diverse community.”