While the government’s focus is on foreign buyers purchasing properties in Australia illegally, more evidence emerged today that local investors are continuing to run rampant across capital city housing markets.
ABS data released this morning shows that during April investors borrowed $13.5 billion in new loans against the $12.7 billion in debt taken on by owner-occupiers.
It led CoreLogic RP Data’s Cameron Kusher to tweet that housing investors have swallowed the housing market.
The focus on foreigners and their investment habits is increasingly looking like a distraction from the core problem that local investors, sheltered from income and capital gains taxes, are the real issue when it comes to housing affordability.
The debate should be about negative gearing. Much more so than foreign investors.