Aussies Buying Homes on Lower Interest Rates

Investors are about 70 percent of visitors at broker Andrew Ienna’s open houses in Sydney’s western suburbs as low borrowing costs lift returns on rentals, and high prices and down payments scare off first-time buyers.

The value of home-loan approvals for investors rose 4 percent in December from a year ago in seasonally adjusted terms, while mortgages for owner-occupiers fell 1.8 percent in the same period, government data show.

From Sydney’s inner suburbs to the mining towns of Western Australia, investors are taking advantage of the lowest mortgage costs since 2009 to profit from a national vacancy rate that has been below 2 percent for more than three years. The number of suburbs where it’s cheaper to buy a home on a variable rate mortgage than to rent rose to 494 in December from 388 two months earlier, figures from researcher RP Data show.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu