Local property investors are getting even younger, according to new findings from Mortgage Choice’s 2016 Investor Survey.
The national mortgage broker’s report found nearly 51 percent of Australians investors were 34 years or younger when they bought their first investment property. Just three years ago, only a third of investors were 34 years or under when they made their first property investment.
John Flavell, Mortgage Choice’s chief executive officer, said he was surprised so many young Australians managed to purchase investment properties in such a challenging financial environment.
“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 admitted. “Furthermore, the recent spate of investment lending changes has made it tougher – in some instances – for younger Australians to obtain finance to buy property.”
Most young Australians said they invested in property to make money to set themselves up for the future. Real estate has shown itself to be the lucrative investment many young Australians are looking for. Property prices have grown significantly across most Australian markets. For example, CoreLogic data shows a combined 10 percent increase in property values across the capital cities over the last 12 months.
“This level of price growth ensures property owners – specifically property investors – see a great return on their investment,” Mr Flavell said.
With interest rates at historic lows, there’s never been a better time to invest in property. However, becoming a property investor for the first time can be