Mortgage Choice’s 2016 Investor Survey revealed that over half of the investors interviewed were 34 years old or younger when they made their first investment property purchase. Just in 2013, only 33.8 percent of surveyed investors were that young at the time of their first purchase.
This is surprising news as property price growth has outpaced wage growth in Australia. It is generally getting more and more difficult for young adults to save a deposit and buy property. Young Australians also have a harder time getting loans approved nowadays than they did a few years ago.
The fact that besides all these difficulties young Australians are becoming property investors earlier in life shows that they really understand the value of owning property and are making efforts to get in the property market sooner rather than later. As property prices rise significantly over the years, young owners will see a great return on their investment.
The number one reason Australians buy investment property is financial gain. And young buyers are looking to secure their financial future. On this note, it is important to understand that property investment must be a long-term deed to maximise their gains.
Young investors should take advantage of the current low cost of borrowing money – due to historical low interest rates, and look for upcoming suburbs that perform well in rental yields and capital growth.