Asset-rich and financially savvy, Australias baby boomers are looking to fund their retirement through property investment.
In a survey commissioned by Mortgage Choice, more than one-third of baby boomers said they plan to buy an investment property over the next year.
The survey of Australians aged between 40 and 55 found 36 per cent of respondents intended to purchase an investment property in the next 12 months, with 46 per cent of these planning to do so for the first time.
Almost half 46.42 per cent said they would fund the purchase through equity, 20.9 per cent would use line of credit, 19.55 per cent would use the more traditional starting point of a saved deposit and 13.13 per cent would fund it through other means.
Mortgage Choice national corporate affairs manager Warren ORourke said the findings of the survey indicated baby boomers were asset-rich.
“Regardless of these consumers nearing the so-called “twilight years”, they are financially savvy and many are looking to fund their retirement through property,” he said.
“This is an exciting but nerve-wracking time, and a decision requiring considerable thought.
“Perhaps they see the current steadily growing housing market and general consensus of stable interest rates as the added incentive to make their investment property plans a reality.”
In the survey, 88 per cent of respondents rated their level of confidence in the housing market as moderate to very high.
And 63 per cent said the removal in August of the NSW Governments unpopular vendor tax a 2.5 per cent tax previously charged on the sale price of an investment property had influenced their decision to put their money into property.
The most popular states for intending purchases were Queensland, 34 per cent, Victoria, 24 per cent, then NSW,|21 per cent.
“The Sunshine State is attracting one third of the imminent baby boomer investment property buyers, with almost half of these buying from interstate,” Mr ORourke said.
Residential free-standing dwellings were the most popular choice
source: http://www.bordermail.com.au
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