The national rental market is seeing growth as more first home buyers turn to investing.
A recent investor survey by Mortgage Choice revealed 36.6 per cent of investors were first-time buyers – significantly higher than the 21.1 per cent recorded this time last year.
Mortgage Choice chief executive John Flavell said the results weren’t surprising, given that property prices continue to rise across Australia’s capital cities where “most people want to live”.
“Australians increasingly want to live close to work and where the action is, [but] with prices rising in most capital cities purchasing property near or close to the city is becoming increasingly difficult for buyers – especially first home buyers,” Mr Flavell said.
“We are seeing an increasing number of first-time buyers purchasing investment properties before an owner-occupied property, as this allows them to buy where they can afford and still live where they want to.”
A quarter of first-time buyers said in the survey that they had purchased an investment property before an owner-occupied property because it was more affordable.
New calculations by comparison site Mozo have revealed that first home buyers across Australia are facing a decade of consistent saving to scrape together the average deposit.
The typical first home buyer on the average wage will have to save 15 per cent of their after-tax salary every month for more than a decade to save a 20 per cent deposit for average-priced property nationwide.