Generation Y Choosing to Invest in Regional Property | FHOC
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New data from the 2014 Housing Affordability Sentiment Index (HASI) survey suggests that Generation Y (those born between 1980 and 1992) are choosing to buy in the regions as they themselves rent in the cities.
The figures show 13% of such Generation Y buyers own an investment property, compared with 7% of Generation X and just 2% of the Baby Boomer generation.
Young Buyers Money-Conscious and Savvy
With property prices challenging for many first-time buyers, especially those living and working in Australia’s big cities, Generation Y are increasingly choosing to play it smart and invest in regional centres.
This is a strategy preferred by young couples who are looking to start a family, but do not have the funds to buy more than a small property in a city centre. Others are simply looking for more return off their savings, and use the rental income they earn to fund their own rented lifestyle.
Trend In Evidence For Some Time
This is not the first time such a trend has come to attention. A 2011 survey by broker Mortgage Choice found that 43% of Generation Y intended to make their first purchase an investment property. Elsewhere, letting agents have noted a boom in Generation Y landlords.
An Effective and Flexible Strategy
Analysts suggest it is a smart strategy for those looking to enter the market, without compromising their flexibility. Instead of being tied to an outsize mortgage and one location, investors retain their freedom of movement whilst gaining the security that comes with being on the property ladder.
However, potential investors are advised to think carefully about where they buy. A good regional purchase should be in an area with a diverse economy and showing strong growth, to ensure that the investment property continues to give sizable capital gains yields.
About First Home Owners Centre
FHOC is the First Home Owners division of HIA award winner Aveling Homes, one of Western Australia’s most quality focused building companies. What this means for you is that above all else, quality and affordability is what you can expect when you choose FHOC.
Visit the FHOC website at http://www.fhoc.com.au for more details about our services and available financing options for first time home buyers. Our financial experts work with you each step of the way to build the home of your dreams.
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