Over five years ago the ‘Great Australian Dream’ consisted of buying your own home; your very own piece of land complete with the white picket fence, hills hoist, big old gum tree and room for the kids to run around – that was the dream! While it still is for some, for others it is about more; today first homebuyers want a home they can build a nest egg from.

Nowadays agents (including ourselves) are noticing a growing trend, as many first homebuyers opt to purchase an investment property over a home to live in. In a recent Residential Property Manager article, James Mitchell reports that, according to Mortgage Choice, over 20 per cent of first home buyers are now electing to buy an investment property as their property purchase.

This figure is up significantly on what it was five years ago, according to Mortgage Choice Chief Executive, Michael Russel.

 “They (first homebuyers) are electing to rent in an area they want to live in and can't afford and are investing in an area they don’t want to live in and can afford,” he said.

Here at HS Brisbane Property we are noticing a rise in the numbers locally as well, witnessing that first homebuyers, locally from Brisbane and from interstate, are looking for fantastic investment opportunities to buy apartments here in the Brisbane CBD.

There are many reasons that we are seeing this shift and we explore a few of those below:

Like Russell said, first homebuyers can not always afford to buy where they want to live from the get-go, so buying an investment apartment allows them to get their foot in the real estate market and build some equity first while living (and renting) in an area they desire, ie. the CBD.

Flexibility is another reason we are seeing a shift in this direction. Many buyers want to enjoy the rewards of owning a home but are not interested in the prospect of being tied down to a mortgage and living in just one location. By investing and renting themselves this eradicates any long term commitments in terms of housing. What’s more, many of these new ‘first homebuyer’ investors are choosing to live in rental properties in the CBD because of the flexible and central lifestyle it offers.

Wanting to minimise on living expenses is also a major driver for some first homebuyers who make the decision to invest. By doing so they have the option to keep bills to a minimum by still living at home with their parents, renting a room or finding another rental in a cheaper location.

Another big reason is purely because of the tax benefits that come with purchasing an investment property – e.g. the ability to claim back expenses such as depreciation, etc.  While this shouldn’t be the sole reason behind the decision to invest, it definitely needs to play a part in the consideration process.

Buying an investment property can help first homebuyers to build equity and wealth so that one day they can afford to buy that dream house they have always wanted.

So really, when you look at all the reasons for this shift in the market, it is very smart; it makes complete sense! Highlighting that property investment is one of the best ways to build a nice egg for your retirement.

Plus, let’s not forget the fact that many of these investors generally opt to live in the CBD, which is great news if you are a local city investor with an apartment or two up your sleeve.

First homebuyer or not, when it comes to building your nest egg there is no better place to invest than right here in the Brisbane CBD. Why not contact our team or come in for a chat and see how we can help you with purchasing your next investment property.