Source: The Real Estate Conversation
New research from Westpac reveals a quarter of first home buyers are considering buying both an investment property and an owner-occupier home.
Westpac’s latest Home Ownership Report shows first home buyers (FHBs) are feeling more confident than ever about their prospects of home ownership.
The report found 29 per cent of FHBs are considering buying both an investment property and an owner-occupier home.
Head of Home Ownership at Westpac, Lauren Fine, says the rise of positive sentiment among FHBs is hardly surprising.
“This surge in confidence and positivity among first home buyers is great to see, and not surprising considering house prices have on average dipped by 2.7 per cent over the past year to date, primarily driven by the Sydney and Melbourne markets,” Ms Fine said.
“However, despite this optimism, a key barrier to first home buyers achieving their dream home remains saving enough for a deposit and upfront costs.
“We’re seeing more first home buyers find new ways to achieve their dream of home ownership, like seeking a second income or taking on extra hours at their job to help get a foot on the property ladder,” Ms Fine said.
Market research group Propertyology has also noticed an increased interest in property investment from FHBs.
Simon Pressley, managing director of Propertyology says more young people are prioritising investing earlier in life, and are turning to ‘rentvesting’.
“Rentvesting is arguably most popular among people in their mid-20s to 30s, especially those living in Sydney, because they’d rather not wait any longer than is essential to get a foot in the property ladder,” Mr Pressley told WILLIAMS MEDIA.
“For first-time property buyers, rentvesting enables you to get into the property market sooner with a smaller deposit, as opposed to taking several years to accumulate a bigger deposit and the market climbing even higher.”
Director of Right Property Group, Steve Waters, says there are many advantages FHBs have when buying an investment property.
“Young investors are usually tech savvy and can easily access and analyze data. They think quick and are fast to comprehend the available information,” he told WILLIAMS MEDIA.
“Another advantage of being in your 20s and 30s is you haven’t yet hit your peak earning potential, so there’s usually some extra cash flow in your future to look forward to. Most of all, you get to start early and gain experience.”