It’s easy to worry yourself sick when it comes to a first home buyer loan. After all, you’re dealing with more money than you’ve probably ever dealt with before, and you want to make sure it is spent appropriately. If you’re looking at an investment home loan, there is also the added concern of what your returns are going to be like.

The September edition of Genworth’s Streets Ahead report highlights that 63 per cent of surveyed home owners and 70 per cent of surveyed Australians that didn’t own a home thought the property market was overheated. The perceived main drivers of this? Foreign buyers and investors. But are these really parties to be concerned about? Let’s look at why overseas home buyers might not be the threat that many seem to think they are.

Foreign investment boosts supply

One concern for people could be that foreign investment takes up properties they wish to spend their home loan on. However, as an April media release from the Property Council of Australia points out, this type of purchasing can actually boost supply for local buyers.

“Every newly constructed home that a foreign investor purchases enables up to four other homes to be built, so this boost is good news for affordability,” stated Ken Morrison, chief executive of the council. Increased supply means more options for you as a buyer!

Different target markets

If you are seeking a first home buyer loan, chances are you won’t be looking to purchase a home in the range of millions of dollars. However, foreign investors do. According to a recent report from Scotia Bank, “foreign demand, especially for luxury properties in top-tier cities, will likely remain high, as investors seek geographical and asset diversification”.

It means that alongside a boost to supply, it is unlikely that you will find yourself in direct competition with overseas buyers for the same homes.

Of course, even if these concerns have strong counterpoints, there can still be a lot of challenges that buyers must face when they look to secure a home loan. Getting enough money together for a deposit, the rising price of real estate (particularly in Sydney and Melbourne) and more can all create a difficult situation.

That’s where the services of a mortgage broker can be vital. By offering you a wider range of products than you could perhaps find at a single lender, you get the benefit of variety and choice.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.