Investors step in to fill the first home buyer gap

Tuesday September 29, 2009

Online enquiries from investors for an Aussie broker appointment jump by 32 per cent

Aussie has seen a surge in the number of investors requesting appointments with its brokers as they step in to take the place of first homebuyers, who are beginning to exit the market following the paring back of the government grant.

The number of investors requesting appointments with Aussie brokers via the website www.aussie.com.au has jumped 32 per cent in the last week as investors get ready to pounce.

Aussie founder and executive chairman Mr John Symond said as of Thursday the $14,000 grant for established homes is reduced to $10,500, and from $21,000 down to $14,000 for new homes.

“Investors have been patiently waiting on the sidelines to see what happens after the First Home Owner’s Grant is reduced,” Mr Symond said.

“There has been a price bubble created in some areas as first homebuyers have paid over the odds for their properties. For investors in that same price range, it has been prudent to sit back and wait for the grant to be reduced.”

Mr Symond said a number of factors had come into play making it a good time to enter the property investment market.

“Increased consumer confidence, high rental yields and a continued shortage of housing is pointing to a “perfect storm” of conditions for property investors,” he said.

However, Mr Symond said it was vital for investors to do extensive research and carry out due diligence on any property they are interested in purchasing.

“There are still good deals to be had, but caution is always required when entering into a property purchase,” he said. “Investors need to do their homework, and allow enough capital to cover mortgage repayments for any periods when the property is vacant.”

As one of the country’s largest non-bank providers of financial services, Aussie has a loan book of over $33 billion. With the acquisition of Wizard, there are now over 140 retail stores and 800 brokers across the country ready to help customers get a better deal on their finances.

An Aussie broker will offer guidance, assess eligibility, lodge the application and then support the first home buyer borrower through the home loan process. Aussie brokers are available 24 hours a day, seven days a week, in all capital cities and regional centres at the request of customers who call Aussie on 13 13 33.

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For more information or to request an interview with John Symond, please call:

Brooke Stoddart
Senior Manager – Public Relations
02 8297 0381 or 0438 677 588

Tim Allerton
City PR
(02) 9267 4511