Nearly 40% of all mortgages processed in March were for investors – which proves just how much investors are currently driving the market.
According to AFG’s latest Mortgage Index, two out of every five (39.6%) new home loans last month were for investors. This equated to a total of 3,384 loans with an overall value of $1.6 billion.
AFG sales and operations manager Mark Hewitt said it was the highest such figure ever recorded;
Speculative financing has been driving house price growth in Australia. Investors are borrowing to purchase houses at record high prices in record high numbers!
That's simply because they are speculating on ever-increasing house values. Once the greatest fools have been lured into the market, it's the end of the line for the speculative mania. That's when investors start to rush for the exit and the great unwind and debt deflation begins.
