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A majority of young Australians buy their first property with a future wealth strategy in mind, according to results of a recent survey conducted by Mortgage Choice.
The survey revealed 62.2 per cent of those looking to buy their first home in the next two years, or who have bought their first property in the past two years, did so to set themselves up financially for the future.
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In addition, more than 65 per cent of survey respondents said they would keep their first home as an investment property when they moved on.
Mortgage Choice spokesperson Jessica Darnbrough said a majority of first home owners consider property as a sound future wealth strategy.
“Property investment often allows Australians to future-proof their wealth, a fact that first home owners seem to understand well,” Ms Darnbrough said.
“They no longer see a home as merely a roof over their heads but a lucrative asset that forms a key part of their long-term financial strategy.”
Sarah Thomson from Loan Market Geelong says she has observed a trend in young buyers purchasing a first property with no immediate intention to live in it.
“I'm seeing a trend towards young purchasers living at home and purchasing their first home purely as an investment,” she said.
According to Ms Thomson, other first home owners are buying where they can afford and renting where they want to live.
“They’re choosing to rent where they would like to live and purchasing an investment property to get into the market,” Ms Thomson said.
“With many younger buyers being priced out of buying in more desirable suburbs, it’s becoming a viable option to get a foot in the door,” she said.
