Australian investors have continued their dominance of the property market, where they now make up more than 30 per cent.
According to research conducted by Mortgage Choice, just over 30 per cent of all new loans are written for investors – notably higher than the 27 per cent recorded one year ago.
Mortgage Choice spokesperson Jessica Darnbrough said it was no surprise to see a rise in investor activity, since these types of buyers see property investment as a way to future-proof their wealth.
“In our recent First Time Investor survey, we asked respondents what their key motivators were for buying, and almost 79 per cent said they would purchase an investment property to set themselves up financially for the future,” Ms Darnbrough said.
“In addition, 58.4 per cent of investors said they see more benefit in investments such as property than they do in the share market.”
The survey also revealed that 49.5 per cent of Gen Y respondents believe that buying an investment property would help them prepare for retirement.
Ms Darnbrough said it was good to see Australians taking the right attitude towards property investment.
“First-time investors do not see property investment as a quick win, but as part of their long-term financial strategy,” she said.