Generation Y are looking to invest in property rather than buy a home. Research conducted by loan comparison site finder.com.au has shown that 50% of Gen Y plan to invest in property before buying a home to live in.
80% of these claim to be investing to establish themselves for the future while 14% are investing because they cannot yet afford their ideal home.
A spokesperson for finder.com.au, Michelle Hutchison, highlighted some pros and cons for Gen Y when it comes to investment:
- The time is right to get competitive interest rates on investment loans.
- You can earn a solid return on your investment by letting the property out.
- There are tax benefits you can claim on such the depreciation of appliances.
- You cannot benefit from the first-home buyers’ grant unless you live in the property.
- You may have to remain living with your parents for a longer period of time.
- If you can’t find a tenant and are renting too then you could find the bills mounting up rapidly.