Investment Pressure
Do you feel the pressured to invest? Or do you believe Generation Y is a group of overreaching youngsters? Mortgage Choice has found over a third of Generation Y's are planning to buy an investment property by June 2011 whilst also aiming to purchase their own home. Almost one quarter of those aimed to create an investment property portfolio, which would include as many properties as possible. 93% stated that their aim was to financially set themselves up for the future with 73% believing that investment properties were more beneficial than the share market.
This survey also showed that even after the FHOB finishes, in 2009, young buyers will not stop purchasing property.
What is interesting is that 31% of those entering the property market decided to miss out on the First Home Owners Grant, choosing to purchase an investment property before purchasing their own home. 15% of those interested in an investment property felt the pressure from their partner or their family.
The idea of entering the market early provides the younger generation time to achieve their dream of accumulating a large property portfolio.
Those surveyed hoped to have an investment property and their own home, in the next two years, which raises concerns about young people borrowing in excess for the ‘want it all now’ attitude. Those looking into property need to look at not over committing themselves when rising interest rates are evident.
Even with the concerns involved in buying 61% of younger investors are confident about property within their state compared with only 37% of the Baby Boomers feeling confident about the housing market. The other difference between these generations was; Gen Y looked at having a better house than living in a good suburb, and the Baby Boomers believed living in a good suburb was more important than the home itself.
23% of those wishing to buy into the property market currently live rent-free to save for their future investments.
32% of those surveyed already were home owners, with only 8% owning them home outright, which is not surprising.
Mortgage Choice showed that when they purchased their investment property, the aspects considered most important in order of preference would be:
1. Price
2.Locality - convenience to amenities and transport
3. Number and/or size of rooms
4. Features - such as driveway access, garage, swimming pool, backyard, fireplace etc.
5. Aesthetic appeal
6. Locality - prestige
7. Age of the property
8. Green/environmental aspects or initiatives
Are you surprised by this survey’s results?
Do you feel the pressure to purchase a house, investment or not?
Do you see yourself owning an investment property in the future?
Why do you think Gen Y feels the need to buy multiple investment properties?
Have you seen the First Home Owners Boost as a positive for Australia?
