First time real estate purchasers in Australia are increasingly entering the property market as investors, says online property agency iBuyNew.
First time real estate purchasers in Australia are increasingly entering the property market as investors rather than as owner occupiers, according to leading online property agency iBuyNew.
iBuyNew CEO Mark Mendel said the company's own data has found the number of first time buyer investors has skyrocketed over the past two years.
Mr Mendel said since 2014 the number of first home owners who are buying through iBuyNew to invest has increased by 188 per cent.
The findings by iBuyNew, which specialises in off-the-plan properties, follows a warning by outgoing Reserve Bank Governor Glenn Stevens that the entry hurdles for first home buyers "may be getting worse".
Mr Stevens said "almost the only way" first home buyers can enter the property market in real estate hot spots such as Sydney is through parental assistance.
Mr Mendel said despite record low interest rates, the first time buyer owner occupier sector has collapsed with many who do choose to buy property now doing so as investors.
"Even though property in most cities is very affordable with interest rates set to stay at historical lows, young Australians have been put off entering the market and they prefer to rent," he said.
"The reality is that the great Australian dream of owning your own home is fading and the goal of being a home owner is diminishing.
"It's an issue for state and federal governments with the current schemes to entice first home buyers out of the rental market either out of date or ineffective.
"We have also found that stamp duty which can add many thousands of dollars to the cost of a property purchase is also a major deterrent to first home buyers."
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Oversupply concerns exaggerated, says iBuyNew CEO