Gen Y purchase for investment first

Almost half of Generation Y buyers will buy an investment property as their first purchase, putting aside the traditional ‘Australian Dream’ of a home, according to a survey conducted by Mortgage Choice.

The Mortgage Choice 2011 First Time Property Investors Survey also found that Gen Y would not only ignore the first home owner grant and first home buyer concessions, but 77 per cent are currently making lifestyle sacrifices to achieve their goal.

This compares to 66 per cent of Generation X and 66 per cent of baby boomers.

Mortgage Choice spokesperson Kristy Sheppard (pictured) said the findings called into question the concept of the ‘Great Australian Dream’ for people aged 30 years and younger.

“Is it still a home, is it property in general – whichever type they can afford – or is it simply about investing in an asset they expect to bring in income and/or appreciate in value?” Sheppard said.

“While it is clear that every generation is focused on profiting from their investment over the long term, many Gen Y respondents recognise building a nest egg rather than building a nest may better suit their income and needs at this early stage of their lives,” she added.