Australia’s property investor borrowing rises at fastest rate in a decade - despite interest rate rises

Property investor borrowing rose at its fastest rate in a decade in March, according to the Reserve Bank, despite higher interest rates and speculation about property tax changes . Owner-occupier loan growth slowed under the weight of growing mortgage costs but investor lending is continuing its record surge. Bank loans to Australian investors grew by $42bn in the year to March, a 9.6% increase and the fastest rate since September 2015, according to the central bank’s statistics. Alannah Comer and her partner were among thousands of Australians who haven taken out investment loans. The Sydney-based couple bought on the city’s northern outskirts in December. “We just thought, why wait?” Comer said. Sign up for the Breaking News Australia email “Obviously, we understand that rates and everything are going to change, but I always just was like: ‘As soon as we’re in a position to buy it, I definitely want to just head straight in’.” The Reserve Bank has hiked interest rates twice already this year since they bought their investment property and economist predict the central bank will raise rates again on Tuesday, but the couple do not regret their decision. Their property has already risen in value. Rumoured reforms to capital gains tax in next week’s budget could eat into her profits, but Comer is not deterred, even planning for another purchase in coming years. …