Gen Z property investors show strong appetite for holiday towns over city suburbs
ING Australia research shows holiday towns are as appealing as city suburbs for Aussie property investors, with 32% of those surveyed considering purchasing an investment property in a holiday location compared to inner city’s 30% and outer city’ 37%.
Gen Zers have the strongest appetite, with 41% saying they would prefer to invest in a holiday location. 31% of Gen Z also said they want the ability to work and rent in the city, whilst still owning an investment property in a holiday town.
The boom in local travel has driven investors to move in on holiday hot spots, as 25% of respondents said they want to take advantage of the local holiday market and 28% purchasing away from urban areas so they can have a place to stay for vacations or use as a second home.
Julie-Anne Bosch, ING’s Head of Home Loans, says: “During the pandemic,many Australians have flocked to holiday hot spots to either take a break or permanently relocate with some also able to take advantage of flexible working.”
“It’s not surprising that savvy property investors are spotting opportunities in towns when traditionally they might have chosen to invest in properties in or around busy city hubs.”
“Despite the increase in house prices, it’s clear from these findings that Gen Zers are financially savvy and looking at alternative ways to get on the property ladder.”
Additional key research findings
The holiday town appeal
- Value for money – 50%
- The desire for a quieter lifestyle – 35%
- The option to have a second home for vacations – 28%
- The ability to live and work in the city whilst still owning property – 20%
The investment property trend
Investment properties are high on the agenda for Australians with 34% surveyed making a purchase in the last two years.
Top reasons to invest in property
- Safeguarding their future and future of their family – 40%
- Low interest rates – 37%
- Extra income – 37%.
Gen Z investors
- 41% Gen Zers say they would prefer to invest in a holiday location.
- 31% of Gen Z want to work and rent in the city, whilst owning an investment property in a holiday town.
Boom in local travel
Investors moving in on holiday hot spots want to take advantage of the growing local holiday market, according to 25% of respondents. 28% are purchasing away from urban areas so they can have a place to stay for vacations or use as a second home.