investors return to the market in droves

exactly as I estimated, investors would take up the slack, left behind by the fhb's....
I think investors are even keener now....they are looking at the rent returns....
Over 5 years or more and no new houses have been built ....regardless of all the talk about the housing shortage....and some promises made by various govt's....
the number of new houses ...is as good as zilch....compared to the new arrivals each week...

the fhb's did not go out and put their money into new homes, to ease the pressure....sure there were some numbers, but nowhere near enough to make much of a difference....
Hence the investor will step up to the plate, but investors will be forced to buy established homes, rather than new homes.....cause there are not enough housing being built, to satisfy either fhb or investor....

Yesterdays news about the standoff, and possibly the abandonment of the Vic plan for 150,000 new houses, will add fuel to the fire...(note the labor govt wants to tax developers up front, before approval has been given, libs want the tax paid after approval, makes sense to most people, why pay a tax, when approval may not be given)

They raised interest rates to starve off heat in the housing market, but there is nothing in place as an alternative.....so watch the heat to continue.....
extract only......................

Investors to driver pace of property

Florence Chong From: The Australian January 06, 2010 12:00AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these?
PROPERTY investors, who took out a third of all residential mortgages in December, are expected to replace first-home buyers as drivers of growth in 2010, according to leading mortgage broker, Australian Finance Group.

The mortgage broking group, which wrote 10 per cent of all residential mortgages in Australia, arranged $650 million in loans for property investors in that month.

The group's general manager sales and operations, Mark Hewitt, told The Australian yesterday that Australia-wide it was fair to assume that investors were responsible for $6.5 billion of mortgages approved in December.

Mr Hewitt said December was actually a "quiet" month compared with the previous three months. "We arranged a total of $3bn worth of mortgages in September."

Last month, AFG, which worked with 30 banks to access mortgages, arranged mortgages totalling $1.9bn. "We've been warning for months that three rate rises in a row was overkill for a vulnerable market, and the latest figures confirm our fears.

http://www.theaustralian.com.au/business/investors-to-driver-pace-of-property/story-e6frg8zx-1225816400682

ps damien....just ignore the noise from left of field...
and continue to discuss the market with rest of us....
what a total waste of my time...will not get caught again
we have too many good posters, with great ideas, to lose this forum...