Live now, pay later? Not any more for Gen Y, who are embracing property investment in a big way, according to the results of the Mortgage Choice 2013 First Time Property Investors Survey*.
We surveyed more than one thousand Australians who were looking to buy their first investment property in the next two years, and 34% of them were Gen Y (aged between 19 and 33). For two fifths of them, their investment property will be their first ever property purchase.The younger generation are shaping up to be savvy investors who are keen to set themselves up for a secure financial future, with 40% of our Gen Y respondents willing to forgo any available first home owner government grant on their first property purchase in favour of buying investment property.
Meanwhile, the other 60% of the Gen Y respondents already own their first or subsequent home and are now branching out to make an investment property purchase.
Their key motivations included:
- Setting themselves up financially for the future (75% of Gen Ys)
- Perceptions that property investment is more beneficial than the share market (47%)
- Planning for retirement (43%)
Their greatest challenges included:
- Saving a deposit (42%)
- Finding the right investment property (29%)
- Choosing their investment strategy (15%)
To overcome these challenges, our survey showed that 75% of the Gen Y respondents were willing to make lifestyle changes including cutting back on day-to-day spending, eating out less and limiting takeaways, missing out on a holiday, delaying vehicle purchasing and cutting back on alcohol related expenses.With the younger generation bucking their carefree stereotype, age is proving to be no barrier to building a property investment portfolio.