news

Young people buying investments before homes

By Stefanie Garber

Young people are increasingly buying their first property as an investment rather than a home, the CEO of a non-bank lender has said.

“More and more people are just starting to come out and buy their first property as an investment property,” CEO of State Custodians Heidi Armstrong said.

In her experience, these novice investors fall into two different groups.

“There are some who want to buy a brand new apartment or something like that, so they’re thinking about taking advantage of first home buyer grants,” she said.

“They’re going in as a first home buyers and then later converting it to an investment property six months later.”

She says this strategy can have advantages from a lender's perspective.

Many lenders will allow first home buyers to buy with a five per cent deposit, whereas they require 10 per cent from first-time investors with no equity, she said.

Nonetheless, some young investors fall into Ms Armstrong's second group, who choose to buy their first investment while renting elsewhere or living with family.

“I think one big factor in it is that people can then choose the location in which they want to live,” she said.

In some cases she has seen, these young investors are completing multiple purchases while still living with mum and dad.

Young people buying investments before homes
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%