FIND YOUR LOCAL BUYERS' ADVOCATE:
    TALKS & PODCAST           CALL US CALL US
1300 655 615
 
 

The
Propertybuyer

Podcast

Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24 with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.

 
 
 

Propertybuyer Blog
Property advice, market updates & more

 

How can millennials buy investment property in Sydney?

June 13, 2017 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

The smashed avocado debate makes a fairly big assumption about millennials and real estate. No, not that they're wasting money on expensive brunch - that they're not already investing in real estate.

CoreLogic's recent Perceptions of Housing Affordability report showed that 12 per cent of millennials (or Gen Y) have bought investment property already. While this is well behind Gen X (19 per cent) and Baby Boomers (18 per cent), it's still a strong showing from a demographic that older investors love to bash.

So how are millennials investing in property? And more importantly, how can they continue to in the current market? 

Use the power of rentvesting

Inner city apartments in Sydney and Melbourne are consistently pushing the $750,000 mark, according to the CoreLogic research - out of the reach for many millennials looking for a place to live. But rentvesting, buying an investment property in a more affordable area, can provide the foundations of a nest egg while also producing positive cashflow. 

For example: Areas like Wyong consistently have median values for houses and units well below the $400,000 mark. Newcastle is primed for capital growth, as our senior buyers' agent Kevin Mason discussed recently. Using professional help to buy investment property in Sydney outside the CBD can be a concrete way forward for millennial investors. 

The bank of mum and dad

CoreLogic's research shows a bleak outlook among some millennials, with 30 per cent believing an inheritance is their best chance of home ownership. However, parents don't have to pass away to help millennials buy real estate in Sydney.

An inheritance doesn't have to be the way millennials buy property.
An inheritance doesn't have to be the way millennials buy property.

Research from the Melbourne Institute shows that in 2014, New South Wales' home ownership rate sat around 63 per cent. This suggests that for many millennials, their parents will have built up significant equity in the family home. 

Unlocking this and using parents as guarantors requires trust, but it's a realistic way for millennials to overcome what 49 per cent of them believe is the biggest roadblock to real estate: finding the deposit. 

Change the way you approach buying investment property

The old days of simply working hard, saving your pennies and buying Sydney property are gone. Price growth, consistent migration and ongoing demand mean that the market might slow, but the trajectory will remain upwards.

Millennials have to adapt and find new ways to buy, like what I've introduced above. And for an even better chance at success in Sydney's property market, always use a buyers' agent. 

The Propertybuyer
Podcast

 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24
with Rich Harvey
Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.