INVESTORS
Unlike first home buyers , investors transact readily in a fast moving market . As a result , as first home buyers started to drop off as the market got too hot , more investors piled in . Generally as prices cool , we generally expect that investors will also pull back . This , however , may not occur as much as in previous cycles .
The first reason that investors are likely to continue to transact is that finance restrictions are still light . Even though interest rates may rise earlier than hoped , access to finance through other restrictions aren ’ t looking likely to change . The second is that rents are rising rapidly . Even with price growth slowing , tenancy conditions are solid which means finding a tenant at a decent rental level is likely to be easier .
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