Australian property investors squeezing out first-time buyers as record borrowing and rate cuts drive purchases

Pressure on first home buyers heightens as investors target lower-priced homes and more affordable regions

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Property investors borrowed a record sum, nearly $130bn, to buy homes over the year to June, supported by interest rate cuts but squeezing out first-time buyers.

Banks made almost 200,000 new loans to landlords over the year, the most since 2022, while the number of new first-home mortgages slipped to 116,000.