Housing finance data for August from the ABS has confirmed that the current New South Wales housing boom is being fuelled by strong investor demand. Owner-occupier housing finance has remained generally flat, though have trended up in the last 6 months. Westpac data on housing finance by investors shows that borrowing by investors has increased by 50% over the last 18 months in New South Wales. This has kept first home buyers on the sidelines, representing less than 10% of the market in NSW by the number of buyers finance commitments. The author argues that helping first home buyers doesn't involve more subsidies, but reducing tax incentives on property investment and altering foreign investment rules. (VIEW LINK)
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