First homebuyers forgo grant to become landlords

By Your Mortgage

Roughly one in three first homebuyers are passing up the $7,000 First Home Owner Grant (FHOG) in favour of entering the property market as investors rather than owner-occupiers.

Angus Raine, CEO of Raine & Horne, said many young homebuyers are beating the affordability crisis by purchasing their first property as an investment.

"Savvy young buyers are recognising that the long-term tax benefits of buying an investment property while living with mum and dad can outweigh the one-off lump sum benefit of the FHOG," Raine said.

"With rental vacancy rates at all-time lows, buying a rental property means that the tax man and tenants can help young Australians climb the property ladder."

South of Sydney, Raine & Horne Wollongong's Joshua Kersten confirmed around a third of first-time buyers are forgoing the FHOG and opting for rental properties while living at home.

"The rental crisis is really pushing up rents and that makes a big difference in affordability for young investors," Raine said.

"Faced with tight affordability, young homebuyers need to think outside the square, and there are still plenty of options available to make property ownership a reality. An experienced real estate agent can certainly fill buyers in on a number of strategies. It's simply a question of choosing the strategy that matches your pocket and lifestyle."