Housing investment has received a lot of press in recent times and the latest analysis from CoreLogic RP Data will do little to abate this. Their research shows investor activity across the country increased 18.8 per cent over 2014, with investment loans for property in Adelaide growing 14.1 per cent alone in the 12 months to December 2014.
After analysing Australian Bureau of Statistics lending and housing finance data, CoreLogic revealed that investor lending has been steadily growing over the past two years. From $7.6billion worth of loans in December 2012, investment housing commitments accounted for $12.6billion in December last year – a 66 per cent rise and the largest growth over two years since December 2003.
Investment housing commitments now make up 41 per cent of all home loans – a near record high not seen since the very start of the country's property boom in 2003.
Most of the activity was concentrated in the property investment hotspots of Melbourne and Sydney, but Adelaide continues to hold its own in the investment market. In fact, South Australia recorded the fourth largest investment home loan value increase behind New South Wales, Victoria and the Australian Capital Territory.
This puts real estate in Adelaide in good stead for the months ahead. When you are investigating property investment options in Adelaide, house prices and lending data are not the only signs of a blossoming market. Advertised rents can also show where investment activity is performing well.
There are great opportunities for maximum rental yield and capital growth in the city. The Domain Group Rental Report for the December quarter revealed that rents rose to a new height of $350 per week. Rental yields provide a reliable short term returns, which makes rentals in Adelaide a good option for property investment.
With encouraging investment activity and opportunities for great rental returns on the horizon, consult with your local real estate agent about purchasing real estate in Adelaide.