{"id":5409,"date":"2024-04-11T08:37:06","date_gmt":"2024-04-10T22:37:06","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5409"},"modified":"2024-04-11T08:37:06","modified_gmt":"2024-04-10T22:37:06","slug":"plot-twist-millennials-are-australias-most-active-property-investors","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/plot-twist-millennials-are-australias-most-active-property-investors\/","title":{"rendered":"Plot twist: Millennials are Australia\u2019s most active property investors"},"content":{"rendered":"
When it comes to buying investment properties, younger Australians are punching above their weight, with Millennials taking the title as the nation\u2019s most active generation for property investment.<\/strong><\/p>\n Investors are continuing to flock to the property market, with the Australian Bureau of Statistics saying the volume of new investor loans in February was\u00a021.5% higher compared to a year ago<\/a>.<\/p>\n Investment loans now make up over half of the growth in new loans over the past year.<\/p>\n But in an unexpected twist, it isn\u2019t older generations of Aussies who are leading the charge to buy rental properties.<\/p>\n New data from the\u00a0Commonwealth Bank<\/a>\u00a0shows Millennials (those born between 1981 and 1996) accounted for almost half (46%) of the bank\u2019s new property investors in 2023.<\/p>\n And almost one in three of those buyers purchased an investment property on their own, without the help of a partner.<\/p>\n Gen Xers (1965 \u2013 1980) are also snapping up rental properties, accounting for 37% of CommBank\u2019s new investment property loans throughout 2023.<\/p>\n Rentvesting is buying property where you can afford, possibly a smaller property in a lower-cost area, and then renting where you want to live.<\/p>\n The CommBank data shows plenty of investors are taking this approach and it makes sense: the average investment loan size is just over $528,000 compared to\u00a0$624,000 for owner occupiers<\/a>.<\/p>\n And remember, if you purchase the right property, as an investor you could expect to earn rental income. That\u2019s extra cash for loan repayments.<\/p>\n In this way, rentvesting could be an opportunity to get started on the property ladder sooner rather than later, without having to make too many lifestyle sacrifices. As the investment property grows in value over time, it can become the stepping stone to buy an owner-occupied home.<\/p>\n The property market offers plenty of appeal to investors right now.<\/p>\n Rental vacancy rates are at a\u00a0record low of just 0.7% nationally<\/a>. Property listings have\u00a0increased in most cities<\/a>, giving buyers more choice, and the past 12 months have seen\u00a0rents skyrocket 11.4%<\/a>\u00a0across our state capitals.<\/p>\nYounger investors flex their muscles<\/h3>\n
Rentvesting \u2013 get into the market sooner<\/h3>\n
The market seems attractive for investors right now<\/h3>\n