Young People are now Investing instead of Buying Property

As we all know the cost of housing these days is making it increasingly difficult for young people to buy their first home. Coupled with this, young people are staying at home living with their parents much longer these days.

As such there is an increasing trend for them to buy an investment property and leverage the associated incentives while living at home before or instead of buying a home to live in.

In a recent edition of the Australian Financial Review Rebecca Thistleton said:

Twenty-somethings that unwilling sacrifice their home buying dreams or their lifestyle are becoming savvy investors in their own right without moving in to their first property.

Young potential home buyers daunted at mortgages or tired of being out bid at auctions have taken the “if you can’t beat ‘em, join ‘em” attitude towards home investors by becoming investors themselves.

This trend also delivers a great opportunity for parents to help their kids get a great start in life by supporting the early stages of investment by leveraging their own equity. That way rather than handing down some inheritance they see their kids benefit of their years of hard work before it’s too late.

“There is no doubt first-home buyers are investing in places in which they will never live” – Rain & Horne’s Brian Reid

 

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