With growing property investment market, more and are Australians are coming forward to join the league. The younger generation in Australia is making a great impact on the economy by utilizing investment loans options. While the millennials have already made the smart choices by already making wiser decisions such as investing in property.
The investment market in Australia is all time high. The Australian Bureau of Statistics stated that the volume of new investor loans is rising every year. It grew around 21.5% more than what it was last year. A surge has been noticed in the market related to investment loans. Statistics also say that the newer generation is actively engaged than older generation in terms of acquiring rental properties.
Younger investors flex their muscles
According to the latest data received from the Commonwealth Bank, the Millennials account for almost half (46%) of the bank’s new property investors. The good news is that one out of every three buyers acquire an investment property independently. Additionally, Generation X or the today’s generation are actively involved in acquiring rental properties.
Embrace Rentvesting for Early Market Entry
Rentvesting involves purchasing property within your financial means, perhaps opting for a smaller unit in a more affordable location, while renting in your desired area of residence.
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 $624,000 for owner occupiers.
And don’t forget, selecting the appropriate property could mean regular rental income for investors, providing additional funds for loan repayments.
Rentvesting presents an avenue to enter the property market earlier, without compromising too much on lifestyle. As the investment property appreciates in value, it can serve as a launchpad towards purchasing a primary residence.
The current market appears enticing for investors
The current property market holds significant allure for investors.
Rental vacancy rates are at a record low of just 0.7% . This has led to increase in Property listings, giving buyers more choice. This is evident from the fact that the past 12 months have seen rents skyrocketing to 11.4%.
Add in growing expectations that interest rates will start to fall later this year, and CoreLogic says it’s likely that property values will continue to rise, giving those who buy today the potential to notch up handy capital gains.
Are you ready to become a property investor?
Get in touch with us today to discover your borrowing potential and estimate your loan repayments. This information could expedite your journey towards becoming a property investor!
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