Aussie property investors are ditching city suburbs for holiday towns

gen-z-invest

Over time, property investment has become a popular financial goal for Aussies of all ages. And according to research from ING, many ‘Gen Z’ investors are ditching city suburbs for holiday hot spots for their portfolios. 

The research found that 41% of Gen Zers (Aussies born between 1997 and 2015) would prefer to invest in a holiday location, while 37% of all investors in the survey said they would consider purchasing a property in outer city suburbs. 

Just over a third (31%) of Gen Zers also said they’d prefer to have flexibility with working and renting in the city while owning property in a holiday town. 

Unsurprisingly, investors cited value for money and the desire for a quieter lifestyle as the top two reasons for wanting to invest in property within a holiday area, at 50% and 35%, respectively. 

“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,” said ING’s head of home loans, Julie-Anne Bosich.

Covid-19 prompts Aussies of all types to flock to greener pastures

Although it’s been more than a year since the Covid-19 pandemic hit Aussie shores, local travel continues to dominate the way we choose to unwind, and it’s prompted investors to make their mark. 

According to the same research, 25% of investors said they now want to take advantage of the holiday property market thanks to the recent local travel boom. 

“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,” said Bosich. 

“It’s perhaps not surprising then that savvy property investors are spotting opportunities in these towns when traditionally they might have chosen to invest in properties in or around busy city hubs.”

During an episode of the Mozo podcast, The Finance Burrito, co-host Liv Gee spoke to Ash Denman, who purchased a property with his partner Nicola outside the Melbourne CBD, all while running a business. 

Similarly, the couple cited the pandemic as their main push to relocate. 

“I’d always wanted to move, but I thought it was something we’d do when we’re 40, [but] it’s been on my personal radar for a long time,” he said. “There’s been a bit of a trend with people migrating regionally, so I think it’s going to get more competitive.” 

“When Covid-19 happened, we noticed pretty quickly that our team could survive remotely and could get through a lot more work without distraction. If it weren’t Covid-19, we wouldn’t have been in the position to move.” 

Gearing up to purchase your first investment property? Then you’re going to need a sweet investment loan. You can compare a range of investment loans by using Mozo’s home loan comparison tool.

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Last updated 18 July 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Investment
    • LVR <80%
    Interest rate
    6.29 % p.a.
    Variable
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Unloan Variable

    • Investment
    • LVR <80%
    Interest rate
    6.29 % p.a.
    Variable
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Special Real Deal Home Loan

    • LVR<80%
    • Investment
    • Principal & Interest
    Interest rate
    6.29 % p.a.
    Variable
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

    Investors enjoy no monthly or annual fees to pay. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Make regular additional repayments and extra lump sum payments. Split your home loan into multiple loan accounts.

  • Basic Home Loan

    • Investment
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.34 % p.a.
    Variable
    Comparison rate
    6.36 % p.a.
    Initial monthly repayment
    $3,108
    Go to site

    No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.

  • Offset Home Loan

    • Investment
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.34 % p.a.
    Variable
    Comparison rate
    6.59 % p.a.
    Initial monthly repayment
    $3,108
    Go to site

    Up to 10 offsets. Competitive rate tiers and interest only repayment option. No application fee. Split loan option. Fast, secure online application. $248 annual fee.

  • Basic Home Loan

    • Fixed
    • Investment
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.55 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,177
    Go to site

    Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.

  • Offset Home Loan

    • Fixed
    • Investment
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.55 % p.a.
    Fixed 3 years
    Comparison rate
    6.65 % p.a.
    Initial monthly repayment
    $3,177
    Go to site

  • SMSF Home Loan

    • LVR <70%
    Interest rate
    6.99 % p.a.
    Variable
    Comparison rate
    7.00 % p.a.
    Initial monthly repayment
    $3,323
    Go to site

    Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.

  • SMSF Home Loan

    • LVR <80%
    Interest rate
    7.49 % p.a.
    Variable
    Comparison rate
    7.50 % p.a.
    Initial monthly repayment
    $3,493
    Go to site

    Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for purchase and refinance. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 20% deposit required.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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