Budget Most Important for Young Investors
With property investment becoming increasingly popular for younger generations, a new survey has revealed that young property investors should be most mindful of their budgets before entering the market.
The online poll which asked Loan Market’s mortgage brokers ‘What’s the most important advice for young property investors?’ found that 47 per cent of the 239 respondents said that having the right budget was the key for successful property investment.
Loan Market spokesperson Paul Smith said that setting up a budget that considered cash flows, expenses, fees and maintenance would lead to easier and more educated decisions when it came to picking the right investment property.
“The enquiries we are seeing from Gen-Y property investors this year is nearly double that of the same time periods in 2010 and 2011. Property investment attracts a much wider demographic than in the past,” Mr Smith said.
The survey also revealed that choosing the right suburb was more important than deciding on the type of property to invest in or choosing the right investment loan product.
“The location and type of property an investor chooses can bring in additional income or different types of expenses. If you apply these factors to a well constructed budget, you’re going to be able to make better investment decisions,” he said.
“Tight rental markets in all capital cities and the ability to fix your interest rate at a historically low rate are two of the biggest factors making property investment so popular right now and it’s likely a trend that going to continue.”
Mr Smith said that the services of a mortgage broker would be beneficial for any property investor who wanted help creating budgets and looking at various investment loan packages.
‘What’s the most important advice for young property investors?’
A) Getting their budget right 47%
B) Decide on a property type 8%
C) Research the suburb to invest in 26%
D) Find the right investment loan package 19%