Who exactly is investing in rentals in Adelaide? According to a recent report by the Real Estate Institute of South Australia (REISA), quite a few investors do not even own their own home yet. The report was spurred on by recent figures revealed by the Australian Bureau of Statistics (ABS) that show first home buyers at an all time low in the Australian market.
Owner occupiers as a proportion of all home owners has historically been around the 70 per cent mark, according to the REISA. However, as of the 2011 Census, this figure was closer to two thirds of home owners. The mid-2014 measures by the ABS revealed that this figure has now dipped slightly lower than 60 per cent.
It seems that many younger home buyers are turning to buying investment properties before buying their own home, claiming that the lower price of rental properties can help them to get their foot on the first rung of the property ladder.
According to the 2014 Mortgage Choice First Time Investor Survey conducted earlier this year, 16.9 per cent of those polled were choosing to buy an investment before purchasing a home to live in.
The same survey revealed that the top motivator for investors was to set themselves up financially for the future, with a total of 78.90 per cent of respondents agreeing. Just under seven per cent of those surveyed said that they could not afford to buy their own home, and were therefore buying an investment, while a further 8.2 per cent said that they were buying an investment before a home because they did not feel ready for the commitment.
According to Mortgage Choice's survey, the hardest part of becoming a property investor was finding the right rental property. Of all those surveyed, 50.6 per cent who had purchased a new home in the last two years said that this was their greatest struggle.
If you're looking for real estate or property management in Adelaide, make sure to get some expert opinions on how to go about it.
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