Expats set to boost property market October 19, 2008 - 12:38PM Expat Australians looking to flee the global financial crisis are poised to set off a fresh wave of buying in property markets nationwide.
Jennifer Nielsen, chief executive of Loan Market Group, says inquiries for home loans from expatriates have escalated in recent weeks. Loan Market operates a home finance broking group including leading independent broker X Inc Finance.
"There is strong interest from expatriate Australians, many of them banking and finance professionals, who are looking to return home to escape the credit crunch in places like London and Singapore," Ms Nielsen said.
"They want to buy property before they come back - we now have three in-house brokers dedicated to servicing inquiries from expats on top of our normal inquiries."
Ms Nielsen said interest from expatriates was expected to escalate in response to home mortgage rate cuts in Australia and the federal government's $10.4 billion economic package.
"The big drop in the Australian dollar is also a huge advantage to returning expats," she said.
"If they are cashed up in US dollars or UK pounds, they are keen to come into the Australian property market right now and chase a bargain."
Ms Nielsen said the home loan market had been resilient in recent months, despite ongoing concerns about the impact of a volatile world economy on Australia.
"While there is no question that the underlying residential real estate market in Australia has slowed in the past 12 months, the volume of inquiries about home loan finance is actually quite solid," she said.
"The interesting trend is the clear majority of people are inquiring about new finance, as opposed to people who are struggling somewhat and seeking refinance."
Ms Nielson said a tough rental market in most capital cities was the primary force pushing first home buyers to seek home loans.
"Many (renters) are looking to escape the rental trap by buying," she said.
AAP
Story Tools Email this story Share / Bookmark story Email to a friend
