Investors cautious about buying property

Staff Reporter

Despite recent research suggesting now is a good time to invest, it seems potential investors are scared to take the plunge.

You’re out of free articles for this month

Username or Email

Password Forgot password?

Keep me signed in on this device.

First Name

Last Name

Mobile

Organisation Type

By becoming a member, I agree to receive information and promotional messages from Real Estate Business. I can opt out of these communications at any time. For more information, please visit our Privacy Statement.

Need help signing up? Visit the Help Centre.

According to RFi’s latest Australian Mortgages Market Wrap, the total value of lending commitments (owner-occupied and investment housing) was down 0.5 per cent in year-on-year terms in June 2011.

Lending commitments for investment housing saw a large fall over the year, decreasing by 12.3 per cent between June 2010 and June 2011.

RFi director Alan Shields said the increased global uncertainty has seemingly led to a subdued appetite for credit in 2011,with investment lending commitments falling 4.4 per cent in June 2011 to $6,059m.

"When we talk to potential investors, there are fewer people than ever saying now is a good time to invest. That said, the proportion of people saying they will purchase and investment property within the next 12 months remains at long term averages - around 10 per cent," Mr Shields said.