According to data from Commbank, millennials made up 46 percent of the new property investors at the Commonwealth Bank of Australia last year.
In comparison, Gen X accounted for 37 percent of the new investors.
The average age of property investors in Australia in 2023 was 43 years old, with an average loan size of $528,405, slightly lower than the country’s overall average loan size of $598,624. With banks now able to lend up to 5.2 times someone’s salary, a mortgage amount of $528,405, along with a 20 percent deposit of $132,101, would allow individuals to afford a home worth $660,506 nationwide.
The top five postcodes for new investment property purchases in 2023 were 2000 (Sydney CBD), 3029 (West Melbourne), 2765 (North West Sydney), 3064 (North Melbourne), and 2155 (North West Sydney). Sydney CBD, West Melbourne, and North Melbourne have consistently been popular choices for property investors, based on data from 2019.
Almost one-third of millennial property investors chose to purchase properties on their own, according to Commonwealth Bank Executive General Manager for Home Buying, Michael Baumann.
Many Australians are adopting the trend of “rentvesting,” which allows them to buy property in a more affordable area without sacrificing their current lifestyle, as stated by Mr. Baumann.
Your Property Your Wealth, a property investment buyer’s agency, also found that individuals aged 25 to 40 were the most active investors.
Investors have significantly contributed to the increase in new lending since 2023, according to the Australian Bureau of Statistics’ Lending Indicators data.
The Treasury recently proposed increasing the capital works tax deduction rate and reducing the final withholding tax rate to encourage investment and construction in the build-to-rent sector.
Despite the interest in rentvesting, Everybody’s Home is urging the government to prioritize social housing as private homes may not always provide affordable options.
The Property Council of Australia is reviewing draft legislation to ensure the creation of rental homes and affordable housing as part of the build-to-rent initiative.
Please rewrite the following sentence:
“The cat quickly ran across the room.”
Rewritten: The feline swiftly dashed through the room.
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