When you think of those most likely to invest in property, you stereotypically think of the older generations… right? Gen X and Baby Boomers? Not Gen Y. Well, think again! Recent reports show quite the opposite. Highlighting that Gen Y is right up there with the best of them, definitely giving the older generations a run for their money when it comes to investing in property.

That’s right! The recent realestate.com.au 2014 Housing Affordability Sentiment Index (HASI) has found that while 13 per cent of Gen Ys may not own their own home, they are actually twice as likely to own an investment property over Gen X, which was only 7 per cent. The smallest segment was Baby Boomers with only 2 per cent.

This was certainly one of the more intriguing findings from the HASI report. However, what’s even more interesting is that these young Australian are actually opting to invest in regional property while continuing to rent or stay at home in the suburbs of our major capital cities.

The question is… what’s driving this current trend amongst Gen Y? Well, according to experts, there are several factors at play; one is budget and another is property size – i.e. what kind of dwelling they can get for their money.

Often young buyers can afford to buy a one-bedroom apartment in their existing location, however many are thinking of starting a family and don’t have a big enough deposit to buy a suitable family home in that same location. Hence, many are opting to invest in a lower-priced regional property and then rent in the city – so it becomes a lifestyle choice more than anything else.

Hannah Schuhmann, Principal of HS Brisbane Property says that Gen Y is certainly onto something. She says that regional investments provide a rational and strategic means for the younger generations to find their way into the property market

“The idea of buying regional property is a great way for those with a smaller budget, like Gen Y, to dip their feet in the water and start investing in the property market – a decision that is highly likely to pay-off in the long run,” says Hannah.

It’s all about knowing where to buy. Schuhmann says the key to finding an income-producing property in regional areas is to look for regional centres which have good employment, education options, transport and planned developments. All of these factors lead towards population growth and greater demand for property, which is ultimately what you what in an investment property.

However, what is really interesting about the report though is that while Gen Y is heading out to regional areas to buy cheaper investment properties, they are still opting to rent in the city.

“The decision for Gen Y to remain living in the CBD is great news for inner-city investors as it means the rental market among capital cities, including Brisbane, is in very high demand,” says Hannah.

Once again proving that inner-city living offers the younger generation an energetic and convenient lifestyle that simply can’t be matched by regional areas.

Want to purchase a Brisbane CBD investment property that will have Gen Y falling at your feet, and give you a solid return on investment? Please contact Hannah on 0419 782 133 for more information.