If you think investing is just for Baby Boomers, it's time for a rethink.
According to new data from the Commonwealth Bank of Australia (CBA), when it comes to buying investment properties last year, Millennials are the most active generation, followed by Gen Xers.
Millennials (born 1981 – 1996) made up 46 per cent of the bank's property investment loans in 2023, with Gen X (born 1965 – 1980) accounting for 37 per cent of all new investment property loans over the same period.
Nationally the average age of property investors was 43 years and the average loan size was just under $530,000.
Another interesting fact from the CBA was almost one third of Millennial investors purchased their investment property on their own.
Investor activity has been increasing in WA, with REIWA members reporting strong interest from Eastern States buyers.
"They're drawn by the value our market is offering," REIWA CEO Cath Hart said.
"Despite increases over the past few years, our property prices are much more affordable than the east coast and we've had significant rent price growth. This means properties have the potential for very good yields.
"Builders and developers have also been reporting strong sales to Eastern States investors. This will boost rental supply in the longer term as these houses are completed."
Lending data from the Australian Bureau of Statistics (ABS) showed the number of new housing loans to investors in 2023 was 10.4 per cent higher than 2022 and 37.4 higher than 2021.
Monthly loan figures peaked at 2,211 in November 2023, the highest on record at the time.
There was a strong investor focus on construction in 2023.
The number of loans for land was 20.9 per cent higher than 2022 and made up 5.6 per cent of total investor loans. The number of loans for building rose 52.7 per cent higher year-on-year, making up 14.0 per cent of total investor loans.
Loans to investors continue to rise in 2024, with the number of loans (2,259) in March passing the record set in November 2023.
The construction trend has also carried through into the first quarter of the year.
Loans for land purchases in the March 2024 quarter made up 6.5 per cent of all investor loans, while loans for building new dwellings made up 16.9 per cent.
ABS data doesn't tell you where investors are buying, but according to the CBA, the top postcodes for investors WA in 2023 were:
| Top WA postcodes for 2023 | Suburbs | |
| 1 | 6210 | Coodanup, Dudley Park, Erskine, Falcon, Greenfields, Halls Head, Madora Bay, Mandurah, Meadow Springs, San Remo, Silver Sands and Wannanup |
| 2 | 6000 | Perth |
| 3 | 6171 | Baldivis |
| 4 | 6112 | Armadale, Bedfordale, Brookdale, Forrestdalte, Harrisdale, Haynes, Hilbers, Mount Nasura, Mount Richon, Piara Waters, Seville Grove, Wungong and Doobarda |
| 5 | 6107 | Beckenham, Cannington, East Cannington, Kenwick, Queens Park, Wattle Grove and Wilson |
| 6 | 6230 | Bunbury, Carey Park, College Grove, Dalyellup, Davenport, East Bunbury, Gelorup, Glen Iris, Pelican Point, South Bunbury, Usher, Vittoria and Withers |
| 7 | 6169 | Safety Bay, Shoalwater, Waikiki and Warnbro |
| 8 | 6061 | Balga, Mirrabooka, Nollamara and Westminster |
| 9 | 6167 | Anketell, Bertram, Calista, Casuarina, Kwinana, Mandogalup, Medina, Orelia, Parmelia, The Spectacles and Wandi |
| 10 | 6164 | Atwell, Aubin Grove, Banjup, Beeliar, Cockburn Central, Hammond Park, Jandakot, South Lake, Success, Treeby and Yangebup |
