ISCOVER
Home buyers are increasingly motivated to buy property as an investment, rather than a ‘forever home’, new Mortgage Choice data has revealed.
Borrowers are increasingly viewing their first home purchase as a stepping stone to get onto the property ladder as soon as possible, rather than waiting for their ‘forever home’, according to brokerage Mortgage Choice.
Research in the Mortgage Choice Home Loan Report found that 54 per cent of Millennial mortgage holders (those born in the early 1980s to mid-1990s) saw their first home purchase as a stepping stone to get onto the property ladder and make progress towards a larger goal, rather than living in it for life.
Similarly, 47 per cent of both Gen Z buyers (those born in the late 1990s to early 2010s) and Gen X buyers (those born in the mid-1960s to 1980) cited they viewed their first property as their ‘forever home’.
Conversely, just 35 per cent of Baby Boomers (those born between 1946 and the mid-1960s) said they saw their first property purchase as a ‘stepping stone’.
The report – based on a July 2025 survey of 1,000 Australians – also revealed that demand for investment property continues to grow, with 45 per cent of home owners citing investment as the main reason for their next property purchase, driven by lower interest rates and tight rental markets.
While building long-term wealth and preparing for future life stages remained the top reasons for buying property among prospective buyers (both 39 per cent), this was followed by home ownership being “a strong investment strategy” (33 per cent), a fear of missing out (30 per cent), and wanting to secure a property in a desirable location (25 per cent).
When it came to looking at future property investments, prospective home buyers said they were doing so because they were needing a bigger place (22 per cent), while some wanted improved features and amenities (19 per cent), to live closer to the CBD (15 per cent), or to live in a better work-from-home environment (14 per cent).
Commenting on the research, Mortgage Choice CEO Anthony Waldron said: “The latest Mortgage Choice Home Loan Report reveals a contrast in how different generations view property, with Baby Boomers saying they bought their first home with the intention of staying put for life, while Gen Z buyers see property as an investment in their future and are focused on getting a foot on the property ladder.
“Our survey findings reveal the rise of ‘stepping stone buying’ or strategic property purchases, with a third of Gen Z buyers sharing they’re motivated to buy property as an investment. And while 41 per cent of Baby Boomers bought their first home with the intention of staying put for life, 54 per cent of Millennial mortgage holders saw their first purchase as a stepping stone to get onto the property ladder and make progress toward their ultimate goal.”
Reflecting on the investor trends, Waldron said that home owners’ growing appetite for investment property is also reflected in Mortgage Choice home loan submission data, highlighting that the value of investment loans was 26 per cent higher year on year.
He said: “Falling home loan interest rates and a tight rental market continue to drive demand for investment property, with Mortgage Choice home loan submission data showing that demand for investment loans rose in every region over the June quarter.
“The findings from our latest survey show that as Australians take a more considered approach to buying property, the case for expert guidance from mortgage brokers is critical to helping borrowers and buyers feel less overwhelmed by the decisions involved with buying property and choosing a home loan.
“Investment properties, particularly in growth corridors and regional areas, can offer manageable entry points with the potential for rental income and capital gains.
“Our survey results suggest that Australians aren’t just buying homes for their lifestyle, they’re buying them for long-term financial gain.”
Research from the Australian Bureau of Statistics (ABS) has shown that the number of first home buyers taking out mortgages for investment purposes is increasing.
The concept of ‘rentvesting’ – buying in one location and renting in another – is also growing in popularity as prospective home buyers face soaring property prices and an average 10.6-year wait to save for a deposit.
[Related: Rentvesting appeal rises as first home buyers feel affordability squeeze]
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