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Millennials are Australia’s most active property investors

When it comes to buying investment properties, younger Australians are punching above their weight, with Millennials taking the title as the nation’s most active generation for property investment. 

Investors are continuing to flock to the property market, with the Australian Bureau of Statistics saying the volume of new investor loans in February was 21.5% higher compared to a year ago

Investment loans now make up half of the growth in new loans over the past year. But in an unexpected twist, it isn’t older generations of Australians who are leading the charge to buy rental properties. 

Younger investors flex their muscles

New data from the Commonwealth Bank shows Millennials (those born between 1981 and 1996) accounted for almost half (46%) of the bank’s new property investors in 2023. And almost one in three of those buyers purchased an investment property on their own, without the help of a partner. 

Gen Xers (1965 to 1980) are also snapping up rental properties, accounting for 37% of CommBank’s new investment property loans in 2023. 

Rentvesting – get into the market sooner

Rentvesting is buying property where you can afford, possibility a smaller property in a lower-cost area, and then renting where you want to live. 

The CommBank data shows plenty of investors are taking this approach and it makes sense. The average investment loan size is just over $528,000 compared to $624,000 for owner occupiers. And remember, if you purchase the right property, as an investor you could expect to earn rental income. That is extra cash for loan repayments.

In this way, rentvesting could be an opportunity to get started on the property ladder sooner rather than later, without having to make too many lifestyle sacrifices. As the investment property grows in value over time, it can become the stepping stone to buy an owner-occupied home. 

The market seems attractive for investors right now

The property market offers plenty of appeal to investors right now. Rental vacancy rates are at a record low of just 0.7% nationally. Property listings have increased in most cities, giving buyers more choice, and the past 12 months have seen rents skyrocket 11.4% across our state capitals. 

Add in growing expectations that interest rates will start to fall later this year, and CoreLogic says it is likely that property values will continue to rise, giving those today who buy the potential to notch up handy capital gains. 

Are you ready to become a property investor?

Talk to us today to find out how much you could borrow, and your likely loan repayments. It could help you become a property investor sooner!

Phone: 1300 855 022

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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