Property investors in Australia are increasingly being made up of young people as the market undergoes generational change.
According to new Mortgage Choice figures more than half of investors in 2016 have been under the age of 34.
If you compare that to 2013, that figure was 33.8% and considering ongoing problems with housing affordability the figures have surprised many, including Mortgage Choice’s CEO John Flavell.
“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 told Australian Broker.
“Furthermore, the recent spate of investment lending changes has made it tougher – in some instances – for younger Australians to obtain finance to buy property.”
While there are those young Australians battling to break into the real estate market for the first time, there also an increasing number looking to build their wealth through property investment.
Real Wealth Investment’s Helen Collier-Kogtevs told Your Investment Property she had noticed this increase in young property investors.
“I have certainly noticed that more and more young people seem to be interested in property investment,” she said.
“For me, it’s great to see people planning forward and looking towards their retirement earlier.”
“It may not be sexy to be thinking about retirement when you’re in your 20s and 30s, but it is so important to consider your financial future when you’re younger.”
“If the generational change hasn’t happened yet, I think it will. I believe that this generation like to live closer to the city or places where there is a lot of infrastructure, opportunity and cultural and social things happening.”
“Because of this, they may choose to purchase an investment property, where they can afford – in the suburbs or even regionally – in the hope that it generates enough income to assist them in purchasing a place where they want to live in the future – say the inner-city.”