First time buyers are expected to be the major players in the property market this year, according to a nationwide poll of mortgage brokers.
The Loan Market poll of 252 of its brokers found that 36% of respondents expected first time buyers to dominate the housing finance market in 2012. Investors came in at a close second, with 33% of respondents picking out Australia’s property investors as this year’s expected dominant force, while refinancers came in third with 30%.
“Our brokers are divided on which consumer group will dominate in 2012, but the majority think first time buyers will be the most active,” said Loan Market chief operating officer Dean Rushton. He went on to add that dual interest rate cuts during the final quarter of 2011 have helped first home buyers to emerge from their hibernation.
“2011 was a savings year for many potential home owners and, with the likelihood of further interest rate reductions and softened property prices, 2012 appears to be primed for first home buyers to enter the market,” he said. Last year also provided evidence that first time buyers are deciding to purchase investment properties as a means to getting a foot on the property ladder, rather than going down the traditional route of buying their own home, said Rushton.
Source: Your Investment Property Magazine