Young Australians look towards property investment

16.8.13(1)If you’re a young Australian who believes property investment is purely for older people with big bank accounts, you might want to think again.

A new study from Mortgage Choice has revealed that more and more young Australians are planning on investing in property in the near future.

According to the home loan company’s survey of more than 1,000 Aussies, 34 per cent of people who are preparing to make a property investment in the next two years belong to Generation Y.

In comparison, 40 per cent of Australians considering property investment belong to Generation X, while just under a quarter fall into the Baby Boomers generation.

Mortgage Choice Head of Corporate Affairs Belinda Williamson says that the study proves many younger Australians are financially switched-on and thinking about their financial futures.

Three quarters of young Australians interested in property investment said that they were motivated mainly by the desire to secure financial stability. Furthermore, 43 per cent said that they were purchasing investment property in order to plan for their retirement.

In a statement released August 15, Ms Williamson explained that 40 per cent of those surveyed by Mortgage Choice were planning to willingly forego claiming the government’s first home owner’s grant, in favour of buying an investment property.

“This younger generation of investors is looking for financial freedom and they see more profit in bricks and mortar investments,” said Ms Williamson.

“It shows that age doesn’t matter when it comes to building an investment property portfolio. A sound investment strategy should set anyone up for success, regardless of their life stage.”

If you are considering making your first property investment, you may want to look towards the city of Sydney, where rental yields have shown considerable growth in recent months.

According to RP Data’s August 1 Rismark Home Value Index Release, the NSW capital recorded solid rental yields of 4.5 per cent for houses and 4.1 per cent for units during the 12 months between July 2012 and July 2013.

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