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A recent survey has revealed an increase in the percentage of investors making lifestyle sacrifices in order to buy their investment property.
In an annual investor survey by Mortgage Choice, 69.4 per cent of investors admitted to making sacrifices to buy property — up from 68 per cent in 2015.
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This comes after Malcolm Gunning, principal of Gunning Real Estate, said that young people are missing out on home ownership because they aren’t prepared to make sacrifices.
“There are lots of young people who are complaining that it is too hard to buy in Sydney, however they won’t forgo their material possessions,” Mr Gunning remarked.
“More and more we are seeing a victim mentality associated with the high cost of property, yet this ‘generation selfish’ sees widescreen TVs, designer clothes, international holidays and eating out as everyday essentials,” he said.
According to Mortgage Choice’s investor survey, 57.9 per cent of respondents nationally said that they had mainly cut back on their day-to-day spending to achieve their property ambitions.
51.4 per cent said they missed out on a holiday, 29.2 per cent delayed a vehicle purchase and 53.9 per cent chose to eat out less and cut back on take-away food.
Mortgage Choice chief executive officer John Flavell said that the results of the survey are unsurprising considering the rise of property prices across most markets.
“Data from CoreLogic found property values climbed 8.3 per cent across the combined capital cities over the last 12 months,” Mr Flavell pointed out.
“While some capital cities performed better than others in terms of property price growth, it is fair to say that most markets have enjoyed an upswing in values over the last few years,” he added.
“With that in mind, I am hardly surprised to hear investors are having to make sacrifices in order to achieve their property investment goals,” he said.
