An increasing number of Australians are ignoring the traditional path to home ownership and are instead investing in property first, according to new research.
The research, commissioned by Wizard Home Loans and conducted by Nielsen Media Research, has identified a new group in the Australian landscape: first home investors.
Results show that during the September quarter 2005, 61,000 Australians intended to jump straight into property investment instead of buying a home to live in first. This is a rise of 15 per cent on the same period the year before.
"The new research confirms a trend we've seen at Wizard", said Wizard Home Loans Chairman, Mark Bouris.
"Young Australians in particular are choosing an alternative road to home ownership, for a range of financial and lifestyle reasons", Mr Bouris said.
According to the research, first home investors are located almost exclusively in the eastern states, where price barriers to enter the market are highest.
NSW, with 22,000 (or 36 per cent), accounts for more people in this group than any other state. Queensland is the second largest with 20,000 and Victoria third with 12,000. South Australia accounts for 2,000 intending first home investors, Western Australia recorded 3,000, and Tasmania 2,000.
"Although affordability is improving, prices are still high and young people are taking up smarter strategies to get into the market," he said.
"Of course some may have adopted this strategy in the past, but now the research confirms that first home investors are a distinct group in the market and are here to stay. Chances are we will continue to see new patterns and groups emerge in response to lifestyle and demographic changes, confirming the richly diverse makeup of Australia".
