Holiday locations are gaining investment appeal as local travel booms on the back of the COVID-19 pandemic.
Four in 10 Gen Zers would prefer to invest in a holiday location, as the COVID-19-induced border closures up the appeal of local holiday spots, new research commissioned by ING Australia has revealed.
Out of 1,039 Aussies surveyed, almost one in three (32 per cent) admitted they are considering purchasing an investment property in a holiday location compared to inner-city (30 per cent) and outer-city (37 per cent) suburbs.
More than 30 per cent of these young investors said that their increasing preference for holiday towns reflects their desire to work and rent in the city while owning an investment property in a holiday town.
Recognising the increasing number of Aussies flocking to holiday spots to either take a break or permanently relocate during the pandemic, ING’s head of home loans, Julie-Anne Bosich, said it’s not surprising that savvy property investors are spotting opportunities in these towns.
“It’s perhaps not surprising then that savvy property investors are spotting opportunities in these towns when traditionally they might have chosen to invest in properties in or around busy city hubs,” Ms Bosich said.
“Despite the increase in house prices, it’s clear from these findings that Gen Zers are financially savvy and looking at alternative ways to get on the property ladder.”
Apart from the rentvesting opportunity, value for money (50 per cent), the desire for a quieter lifestyle (35 per cent) and the option to have a second vacation home (28 per cent) are also attracting Australians to holiday towns.
The research also suggested that the recent boom in local travel has encouraged investors to seek opportunities in holiday hotspots. Of those surveyed, 25 per cent said that they want to take advantage of the growing holiday market.
Ultimately, investment properties remain high on the agenda of Aussie investors, with 34 per cent of property investors having made a purchase in the last two years.
According to them, safeguarding their future and the future of their family (40 per cent), low interest rates (37 per cent) and extra income (37 per cent) are among the top reasons that they invest in real estate.