GENERATION Y first-home buyers are targeting investment properties as they enter the real estate market, Loan Market chief operating officer Dean Rushton says.
“In the past month we have experienced a 5 per cent rise in inquiries from first-time buyers, with a significant number interested in investment properties,” he said.
“Among these first-home buyers there has been a 15 per cent rise in the number of them looking to purchase an investment property. Many hope to take advantage of current high rental yields.”
Mr Rushton said Generation Y – those people born after 1981 – was still chasing the great Australian dream of home ownership but many were now approaching the market from a different angle.
“An investment property also gives them the option to buy property where they can join forces with a family member or friend to purchase,” he said.
“If they can muster a healthy deposit and take advantage of some of the interest rate specials on offer from lenders, they could well be positively geared on the investment.
“Interest rates staying on hold since November last year has also resulted in an increase in inquiries from first-time buyers.” n