Landlords in Australia are opting for home loans to increase their ability to acquire properties in other states, as indicated by the latest figures from Terri Scheer Insurance.
According to the data, one-fifth of its customers have rental properties outside of their home state.
“This suggests that investors are choosing rental properties in areas they believe will give them the best returns, regardless of where they live,” said Carolyn Majda, Manager at Terri Scheer.
Queensland was found to be the most popular place for those applying for home loans for rental property, since prices in the region have depreciated.
In spite of growing interest in investment property in the state, the ratio of homes owned by landlords was recorded at just nine percent, making it one of the lowest in the country.
This development came after AMP Capital Investors’ Shane Oliver suggested that the cost of buying a property may fall if the global financial crisis affects the nation’s economy.
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