June 17, 2016
New data from Mortgage Choice has found property investors are getting younger.
According to the 2016 Investor Survey, 50.8% of investors were 34 years of age or younger when they purchased their first investment property.
By comparison, in 2013, just 33.8% of investors were under the age of 34 when they bought their first investment.
Mortgage Choice chief executive officer John Flavell said he was surprised to see an increase in the number of younger property investors.
“With property price growth outpacing wage growth over the last few years, saving a deposit and buying property has become very difficult for a lot of younger Australians,” he said.
“Furthermore, the recent spate of investment lending changes has made it tougher – in some instances – for younger Australians to obtain finance to buy property.”
Mr Flavell said it was clear from the data that Australians clearly understood the value of owning property and younger Australians were keen to get their foot into the market sooner rather than later.
“Property prices have risen significantly across most markets over the past few years, which is great news for property owners,” he said.
“Data from CoreLogic shows property values have risen by 10.0% across the combined capital cities over the last 12 months to June.
“This level of price growth ensures property owners – specifically property investors – see a great return on their investment.
“In fact, looking at the survey data, the number one reason why Australians bought an investment property was for financial gain.”
According to the data, 29.6% of respondents said they bought an investment property to ‘set themselves up financially for the future'.
“Australians understand the benefit of investing their money in property. Provided they take a long term approach to property investment, investors should be able to see a good return on their investment,” Mr Flavell said.
“And, with interest rates currently sitting at historical lows, making the cost of borrowing more affordable than ever before, there has never been a better time to be a property investor.”
Of course, for those Australians thinking of buying an investment property in the not-too-distant future, Mr Flavell said it is important for investors to do their due diligence.
“Before buying an investment property, it is important to do your research and get a good understanding of the current property market. In your research, look for suburbs that perform better than others in terms of rental yields and capital growth.”