Aussie property investors are ditching city suburbs for holiday towns

Over time, property investment has become a popular financial goal for Aussies of all ages. And according to research from ING, many ‘Gen Z’ investors are ditching city suburbs for holiday hot spots for their portfolios.
The research found that 41% of Gen Zers (Aussies born between 1997 and 2015) would prefer to invest in a holiday location, while 37% of all investors in the survey said they would consider purchasing a property in outer city suburbs.
Just over a third (31%) of Gen Zers also said they’d prefer to have flexibility with working and renting in the city while owning property in a holiday town.
Unsurprisingly, investors cited value for money and the desire for a quieter lifestyle as the top two reasons for wanting to invest in property within a holiday area, at 50% and 35%, respectively.
“Despite the increase in house prices, it’s clear from these findings that Gen Zers are financially savvy and looking at alternative ways to get on the property ladder,” said ING’s head of home loans, Julie-Anne Bosich.
Covid-19 prompts Aussies of all types to flock to greener pastures
Although it’s been more than a year since the Covid-19 pandemic hit Aussie shores, local travel continues to dominate the way we choose to unwind, and it’s prompted investors to make their mark.
According to the same research, 25% of investors said they now want to take advantage of the holiday property market thanks to the recent local travel boom.
“During the pandemic, many Australians have flocked to holiday hot spots to either take a break or permanently relocate, with some also able to take advantage of flexible working,” said Bosich.
“It’s perhaps not surprising then that savvy property investors are spotting opportunities in these towns when traditionally they might have chosen to invest in properties in or around busy city hubs.”
During an episode of the Mozo podcast, The Finance Burrito, co-host Liv Gee spoke to Ash Denman, who purchased a property with his partner Nicola outside the Melbourne CBD, all while running a business.
Similarly, the couple cited the pandemic as their main push to relocate.
“I’d always wanted to move, but I thought it was something we’d do when we’re 40, [but] it’s been on my personal radar for a long time,” he said. “There’s been a bit of a trend with people migrating regionally, so I think it’s going to get more competitive.”
“When Covid-19 happened, we noticed pretty quickly that our team could survive remotely and could get through a lot more work without distraction. If it weren’t Covid-19, we wouldn’t have been in the position to move.”
Gearing up to purchase your first investment property? Then you’re going to need a sweet investment loan. You can compare a range of investment loans by using Mozo’s home loan comparison tool.
Compare investment home loans - last updated 28 June 2022
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Green Home Loan
Investor, Principal & Interest
interest rate
comparison rate
Initial monthly repayment2.89% p.a. variable3.31% p.a.Great low rate on investment loans when you package with your owner-occupied loan. Get a 7.0 star NatHERS rating or higher for up to 1.79% discount on your variable rate home loan. For homes less than 12 months old.
CompareCompareGreen Home Loan
Great low rate on investment loans when you package with your owner-occupied loan. Get a 7.0 star NatHERS rating or higher for up to 1.79% discount on your variable rate home loan. For homes less than 12 months old.
- interest rate
- 2.89% p.a. variable
- comparison rate
- 3.31% p.a.
- variable rate
- 2.89% p.a.
- comparison rate
- 3.31% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes - 0.10% loading
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Green Home Loan
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Unloan Variable
Investment, Refinance Only
interest rate
comparison rate
Initial monthly repayment2.94% p.a. variable2.86% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 2.94% p.a. variable
- comparison rate
- 2.86% p.a.
- variable rate
- 2.94% p.a.
- comparison rate
- 2.86% p.a.
- Upfront fees
- $0
- Ongoing fees
- -
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $3,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Unloan Variable
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Discounted Home Value Loan
Investment, Principal & Interest, LVR <70%
interest rate
comparison rate
Initial monthly repayment2.92% p.a. variable2.93% p.a.Competitive variable Investor rate. Unlimited extra repayments for free. Enjoy the flexibility to redraw additional payments at no charge. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022
CompareCompareDiscounted Home Value Loan
Competitive variable Investor rate. Unlimited extra repayments for free. Enjoy the flexibility to redraw additional payments at no charge. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022
- interest rate
- 2.92% p.a. variable
- comparison rate
- 2.93% p.a.
- variable rate
- 2.92% p.a.
- comparison rate
- 2.93% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $15,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.
Read our Mozo Review to learn more about the Discounted Home Value Loan
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Special Real Deal Home Loan
LVR<80%, Investment, Principal & Interest
interest rate
comparison rate
Initial monthly repayment3.07% p.a. variable3.11% p.a.Refinance and get up to $3,000 cashback. LVR ≤90%. $2,000 cashback for loans ≥ $250k, plus bonus $1,000 for loans ≥ $500k. Limited time offer extended, T&Cs apply.
CompareCompareSpecial Real Deal Home Loan
Refinance and get up to $3,000 cashback. LVR ≤90%. $2,000 cashback for loans ≥ $250k, plus bonus $1,000 for loans ≥ $500k. Limited time offer extended, T&Cs apply.
- interest rate
- 3.07% p.a. variable
- comparison rate
- 3.11% p.a.
- variable rate
- 3.07% p.a.
- comparison rate
- 3.11% p.a.
- Upfront fees
- $595
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - fees apply
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Investor
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Up to $3,000 cashback when you refinance your home loan from another financial institution when you apply by 30 Sept 2022 and are funded by 30 Nov 2022, LVR <90%. $2,000 cashback for loan amounts of $250,000 and a bonus $1,000 for $500,000 or more.
Read our Mozo Review to learn more about the Special Real Deal Home Loan
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Smart Home Loan
Investor, Interest Only
interest rate
comparison rate
Initial monthly repayment3.74% p.a. variable3.76% p.a.A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.
CompareCompareSmart Home Loan
A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.
- interest rate
- 3.74% p.a. variable
- comparison rate
- 3.76% p.a.
- variable rate
- 3.74% p.a.
- comparison rate
- 3.76% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Interest Only
- Availability
- Investor
- Repayment options
- Monthly
- Special Offers
Read our Mozo Review to learn more about the Smart Home Loan
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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