Investment property figures spike
It appears that many Australians aged between 35 and 64 are utilising low home loan interest rates in order to grow their future wealth, if the latest Roy Morgan Research Consumer Single Source survey is anything to go by.
The survey found this age group is the biggest driver of growth in investment property loans between 2010 and 2014.
On the whole, more and more Australians are leaping into the property investment game. There are many reasons to choose property in order to build future wealth, from its inherent tangibility to the potential tax breaks on offer.
Australian investment trends
As of March 2014, 1.31 million Australians aged 18 or older had an investment property loan, Roy Morgan Research explained.
By contrast, just 954,000 individuals had such a loan in 2010, highlighting strong growth of 37 per cent between 2010 and 2014.
Those with owner-occupied home loans increased over the same period from 4.66 million to 4.83 million - just a 4 per cent increase.
"The growth in investment property loans over the last four years has come predominantly from the 35 to 64 age groups which account for 78 per cent of the increase," Roy Morgan explained.
"The result is that 11.9 per cent of the 50 to 64 age group now hold an investment property loan (compared to 9.4 per cent in 2010) and 11.3 per cent of the 35 to 49 age group had one (up from 8.5 per cent)."
Particular demographics are more likely to hold an investment loan. For instance, "Leading Lifestyles" individuals are 36 per cent more likely to have an this kind of loan, compared to the average Australian aged 18 or older, explained Roy Morgan Research.
When it comes to owner-occupied home loans, "Today's Families" individuals are 45 per cent more likely to have an owner-occupied loan compared with the average Australian individual 18 years or older.
Whether you're after a home upgrade or an investment property, be sure to check out our mortgage calculator to find out what kind of rates are available to you.
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