More investors sacrificing lifestyle to buy property

August 16, 2017

A majority of Australian investors had to make sacrifices to their lifestyle so they could buy property, new data shows.

Mortgage Choice's Investor Survey found 71% of property investors had to sacrifice parts of their lifestyle in order to purchase a dwelling.

“This is the third year in a row that we have seen a rise in the proportion of Australian investors saying they have been forced to make lifestyle sacrifices in order to buy property,” Mortgage Choice chief executive officer John Flavell said.

“In 2016, 69.4% of investors said they made lifestyle sacrifices in order to afford their investment property, while in 2015, 68.1% of investors said they did the same.

“Of course, when you consider that most property markets have seen a jump in property values over the last few years, I am not surprised to see that more and more investors are having to sacrifice elements of their lifestyle in order to make their property purchasing goals a reality.

“The latest figures from CoreLogic show property values across the combined capitals have risen by 10.5% in the 12 months to June 2017 alone.”

When asked what lifestyle aspects they had to sacrifice, the survey found the majority of investors had to reduce their daily spending in order to afford the purchase of their investment property.

“Our research found that 78.1% of investors said they had to cut back on day to day spending,” Mr Flavell said.

“Meanwhile, 54% of investors said they chose not to take a holiday, while 38.7% delayed their decision to purchase a vehicle.”

“It is clear from the data that investors are savvy and they know to make their property ownership goals a reality, they need to make changes to their lifestyle.”

Mr Flavell said there were plenty of opportunities in the market for anyone wanting to purchase an investment property.

“If you have been thinking about purchasing a property but have been sitting on the fence due to uncertainty in the market, the reality is now is a good time to jump onto the ladder.

“Interest rates remain at historic lows. And despite the recent spate of changes in the investment lending space, there are still plenty of lenders who are happy and hungry to write investment loans.

“That said, if you are thinking of buying an investment property in the not too distant future, it pays to do your research and speak with a professional.

“A broker will assess your current financial circumstances and source the best home loan for your needs.

“They can also source you a loan pre-approval that gives you a clear indication of what you can afford to buy and what your monthly repayments will be.”