Gen Ys are jumping on the investment property ladder early and some of them already have multiple properties.
The average age that a gen Y becomes an investment property owner is 25, a Domain Consumer Insights Study shows.
That’s 10 years earlier than generation X and two decades earlier than baby boomers. Domain Review editor Jennifer Duke says it may be that parents are teaching their children to get into property earlier.
“I also think the idea of buying an investment property and renting at the same time is now much more commonly accepted, whereas probably 10, 20 years ago you bought your house to have your family in.”
The study also shows the number of generation Y Australians who own multiple properties – 16 per cent – is on par with the baby boomers and gen Xers.
Ms Duke says with historically low interest rates prevailing, property investment has become an increasingly attractive avenue for building wealth.
“I would imagine the bank of mum and dad is probably coming into play a little bit,” she added.
Ms Duke says some gen Ys may be investing with their parents, who can access the increased equity in their homes due to the boom in the property market.
She says the difference in the lifestyles of gen Ys compared to their parents, including in terms of them not getting married and having children as early, may mean they’re in a better position to invest.
GENERATIONS IN THE INVESTMENT PROPERTY GAME:
* Average age of investment ownership – 34
* For gen Y it’s 25, gen X 35, baby boomers 45
* 16 pct of gen Ys own two or more properties
* 17 pct for gen X and baby boomers
Source: Domain Consumer Insights Study. Conducted by Nielsen for Fairfax Media’s Domain.