Property still holds a strong appeal for investors, with one in every five (20%) of Aussies saying they own an investment property.
New South Wales and Western Australia continue to lead in terms of the highest percentage of residents with at least one investment property (22% each). Both states grew year-on-year by 4%.
Meanwhile, Western Australia has taken the crown from NSW and Victoria, and residents with multiple investment properties have more than doubled in the past year (from 4% to 9%).
“The only state where appetite for investment property has dampened is South Australia, in which approximately one in every 10 (11%) people owns an investment property, down from 15 per cent in 2015.”
Rather surprisingly, younger investors are leading when it comes to property investment.
“What’s interesting is that while there are continued questions around affordability and the challenges for younger generations in getting onto the property ladder, it’s actually Gen Y that is leading the property investment pack,” stated Mark Woolnough, head of third party distribution at ING Direct Australia.
Twenty-two percent of Gen Y (18-34 year olds) own at least one investment property, followed by 20% of Gen X (35-49 year olds) and 19% of Baby Boomers (50-64 year olds).
“Ultimately we’re seeing that Australians still hold faith in the long term investment benefits of property. Property is a great opportunity to build wealth, but it definitely pays to do your research, take your time, speak to the experts such as a mortgage broker or buyers’ agent, and focus on the financials of the investment rather than the emotions of a purchase.”
The ING Direct Household Financial Wellbeing Index was conducted by Galaxy Research between 6 September and 9 September 2016. The sample of 1,004 household financial decision-makers, aged between 18 to 69 years, was distributed throughout the country. Data was weighted by region and household size to reflect the Aussie household population based on the updated ABS population projection of the 2011 census.
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