According to the latest data, the number of first-time property buyers purchasing an investment instead of a home is increasing.
The NAB Residential Property Q3-2016 Survey found that many young prospective property owners are choosing to invest rather than opting for the traditional route of first homeownership.
According to the NAB survey, first home investors constitute about 12.2% of all new property sales in the third quarter of 2016, up from 11.1% in the second quarter. The NAB survey also found that first home investors represented 10.6% of all established property sales, a slight increase from 9.7% in the second quarter.
According to ING Direct’s latest Financial Wellbeing Index, there’s a growing number of young buyers in the 18-34 age bracket turning to property investment. As per the index, 22% of Generation Y own at least one investment property (despite concerns about housing affordability among young people); this is followed by 20% of Generation X and 19% of Baby Boomers.
“What’s interesting is that while there are continued questions around affordability and the challenges for younger generations in getting onto the property ladder, it’s actually Gen Y that is leading the property investment pack,” said Mark Woolnough, ING Direct’s head of third party distribution.
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