In a story first published by it has been found that sneaky investors are pretending to be owner-occupiers in order to get lower rates for what actually are investment properties.

The Australian Prudential Regulation Authority (APRA) ordered the banks to offer lower rates to owner-occupiers to give them a chance to break into the housing market.

Investors have been artificially driving home prices up for some time now; to such a point many speculated on whether a house-price bubble might actually be forming.

Whether or not this is true, cashed up investors have been able to outbid first-time homebuyers and crowd them out of the market.

Upon news of the APRA changes investors did what investors do – they adapted.

Mortgage brokers claim they are horrified by such underhanded tactics. But in reality why should they, or the banks, care where their commissions and interest repayments comes from?

Investors, meanwhile, can get around the rule changes by having their mail diverted from the investment property to their own residence, or by entering into a mail-pickup agreement with the new tenants.

Housing market regulators are being very cautious. The current high ratio of investors to owner-occupiers and artificially high house prices create a market similar to that of the U.S. prior to the GFC.

Moreover, the government is concerned about the spreading wealth disparity between investors and those forced into an endless cycle of rent.

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