Aussie property investors are ditching city suburbs for holiday towns
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.
Compare investment home loans - last updated 29 March 2024
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- Low Cost Home Loan - 2024
Unloan Variable
Investment, Refinance Only
interest rate
comparison rate
Initial monthly repayment6.29% p.a. variable6.20% p.a.For refinancers only. 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 in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. 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 in as little as 10 minutes.
- interest rate
- 6.29% p.a. variable
- comparison rate
- 6.20% p.a.
- variable rate
- 6.29% p.a.
- comparison rate
- 6.20% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Unloan Unloan Variable
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SMSF Home Loan
LVR <70%
interest rate
comparison rate
Initial monthly repayment6.99% p.a. variable7.00% p.a.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.
CompareCompareSMSF Home Loan
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.
- interest rate
- 6.99% p.a. variable
- comparison rate
- 7.00% p.a.
- variable rate
- 6.99% p.a.
- comparison rate
- 7.00% p.a.
- Upfront fees
- $720
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the loans.com.au SMSF Home Loan
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Back to Basics Special
LVR<60%, Investment, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.43% p.a. variable6.44% p.a.Competitive variable for investors with no monthly account keeping or ongoing annual fees. Unlimited additional repayments & option to redraw additional repayments as cashback.
CompareCompareBack to Basics Special
Competitive variable for investors with no monthly account keeping or ongoing annual fees. Unlimited additional repayments & option to redraw additional repayments as cashback.
- interest rate
- 6.43% p.a. variable
- comparison rate
- 6.44% p.a.
- variable rate
- 6.43% p.a.
- comparison rate
- 6.44% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $350.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $0 establishment fee on lending >$150,000
Read our Mozo Review to learn more about the Suncorp Back to Basics Special
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Variable Investor Home Loan 80
Investor, Principal and Interest, LVR<80%
interest rate
comparison rate
Initial monthly repayment6.34% p.a. variable6.36% p.a.Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.
CompareCompareVariable Investor Home Loan 80
Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.
- interest rate
- 6.34% p.a. variable
- comparison rate
- 6.36% p.a.
- variable rate
- 6.34% p.a.
- comparison rate
- 6.36% p.a.
- Upfront fees
- $530
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the loans.com.au Variable Investor Home Loan 80
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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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