The average age of an Australian property investor is 34 years. The four youngest Blue Wealth employees, with an average age of 23.5 years, all own property. High five Blue Wealth Gen Y property moguls; you’ve beaten the Australian average by more than ten years!
Tax Office statistics show that almost 1.9 million Australians declare rental income. Of the 28 Blue Wealth employees, 85% are property investors, well above the Australian average. Education and support are king. In addition, 30% of Blue Wealth staff own two or more investment properties, that’s more than 20 times the national figure. They join the 310,000 Australians in this elite club.
According to the Domain consumer insights study, the average age that Gen Y Australians became investment property owners is 25 years, whereas the average age for Gen X was 35 years and 45 years for the Baby Boomers. In addition, 16% of Generation Ys own two or more properties, compared to 17 % of Baby Boomers and Gen Xs.
Interestingly, nearly 75% of investors earned less than $80,000 per annum. I’m often asked about the prospects of negative gearing and my answer always draws on the above. Property investment is no longer the exclusive playground of the wealthy. Australians from all walks of life, many of you reading this now, are opting to invest in property in more affordable markets and rent where they want to live.
In fact, the share of first home buyers purchasing new property for owner-occupation slipped to 13.7% over Q1 2016, down from 15 % in Q4 2015. Over the same time, the number of first home buyers purchasing new property as an investment increased over 2% to 10.1% in Q1 2016.
Get educated about property, get the right advice and ensure you have a dedicated and qualified support network. There’s no better time to start than today.