Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Gen Y Invests to Buck Trend; More Investment Savvy Than Given Credit for and Willing to Sacrifice Lifestyle Choices for Security

Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Gen Y Invests to Buck Trend; More Investment Savvy Than Given Credit for and Willing to Sacrifice Lifestyle Choices for Security

Article excerpt

THE LIVE-now, pay-later mentality often associated with Generation Y is being defied, the results of a recent national survey show.

The Mortgage Choice 2013 First Time Property Investors Survey shows younger generation Australians are shaping up to be savvy investors, who are aware of the benefits of buying into the property market and are often willing to give up aspects of their lifestyle to fund their purchase.

Of the 1000-plus Australians surveyed who were planning to buy their first investment property in the next two years, Gen Y made up more than a third (34%) of the respondents. Interestingly, for two-fifths of these Gen Y respondents, an investment property would be their first property purchase.

Commenting on the survey findings, Mortgage Choice head of corporate affairs Belinda Williamson said Gen Ys appeared to be financially switched-on and were focusing on property investment.

"Some 40% of the respondents in this age bracket are willing to forgo any available First Home Owner Grant on their first property purchase, in favour of buying an investment property, as opposed to a home," she said.

"The other 60% of the Gen Y respondents already own their first or subsequent home and are now branching out to make an investment property purchase."

Key motivations

WITH financial security high on their agenda, Gen Ys were motivated to purchase their first investment property by the need to set themselves up financially for the future (75% of Gen Ys), followed by the perception that there was more benefit in investments such as property, than in the share market (47%) and rounding out the top three was the notion of planning for their retirement (43%).

"This younger generation of investors is looking for financial freedom and they see more profit in bricks and mortar investments," said Ms Williamson.

Greatest challenges

THE decision to buy an investment property can mean some buyers will have to overcome a few hurdles.

The greatest challenge for Gen Y first time investors, as indicated by them, was saving a deposit (42%), followed by finding the right investment property (29%) and choosing their investment strategy (15%). …

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