Investor love affair with property continues

Property is still hot for investors with growing number of Australians owning investment home

According to ING DIRECT’s latest Financial Wellbeing Index, property still holds strong appeal for investors with an amazing one in every five (20%) Australians saying they own an investment property.

Despite tightened investor lending and signs that the property market is slowing, investor demand has continued to grow with the number of Australians investing in property growing by 3% since mid-2015.

Some states are more popular than others though, with NSW, Victoria and WA leading the pack, despite their “property bubble” reputation.

2016 1 investment property 2+ investment properties
National 20% 14% 6%
NSW 22% 16% 6%
VIC 21% 16% 5%
QLD 17% 10% 7%
SA 11% 9% 2%
WA 22% 13% 9%

Source: ING DIRECT Financial Wellbeing Index

In terms of age groups it was, quite surprisingly, Gen Y nominating themselves most frequently as property investors.

“What’s interesting is that while there are continued questions around affordability and the challenges for younger generations in getting onto the property ladder, it’s actually Gen Y that is leading the property investment pack,” said Mr Woolnough, Head of Third Party Distribution, ING DIRECT.

According to the research, 22 per cent of Gen Y (18-34 year olds) own at least one investment property, followed by 20 per cent of Gen X (35-49 year olds) and 19 per cent of Baby Boomers (50-64 year olds).

This is despite a separate recent ME survey of 1,000 Australians finding that ‘buying your first home’ was nominated as one of the top three financial challenges.

“As a bank we see firsthand how hard it is for younger people, particularly for Gen Ys buying a first home, when average house prices are seven times the average income today compared to three times thirty years ago,” said ME head of Deposits and Transactional Banking, Nic Emery.

Considering investing? See our comparison table below to view the current low rate variable investor home loans available on the market, sorted by comparison rate (lowest to highest). Please note that this table features products that are based on a loan amount of $750,000 with a LVR of 80%, under an investing profile in NSW, with links direct to the providers website.


Share this article