Gen Y leading the property investment pack
Contrary to most expectations – according to an analysis by ING Direct Bank not all of Generation Y are spending their money on holidays and eating expensive smashed avocado toast. Our youngest generation – Gen Y - are actually leading the investment pack.
The analysis by ING Direct found 22 per cent of Gen Y owned at least one investment property followed by Gen X (20 per cent) and Baby Boomers (19 per cent). The ING Direct survey of 1000 people aged between 18 and 69 years of age revealed it was Victoria where Gen Y investors were most enthusiastic with 29 per cent of them owning an investment property, followed by 21 per cent in New South Wales.
Across the whole population about one in five Australians own an investment property.
ING Direct head of product Tim Newman said the results showed that Gen Y were still overwhelmingly keen to get into the property market. The recent research confirms that there is very much a strong cultural Australian dream to own their own home and to eventually also own an investment property to help build their wealth.
It also appears from the research that property is still seen as a safer long term investment than the stock market and the old adage of investing in ‘bricks and mortar’ still rings true as the asset seems more tangible. Investors can inspect their property and satisfy themselves as to its stability rather than watching the share market rise and fall on a daily basis.
Many of the younger generation have worked out for themselves that they do not want a life time of working to have a very modest home and lifestyle on an aged pension, so investing smart and taking a little more risk in their earlier years can help to provide them with a more financially viable retirement. Gen Y are buying an investment property where they can afford to at entry level and then waiting for capital growth to provide the equity to purchase another whilst renting a property that suits their immediate needs and lifestyle.