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.” 

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