One in four Australians eager to buy investment property, despite recession

By Niko Iliakis · · 2 min read
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The COVID-19 pandemic has turned the economy on its head and forced many of us to rethink our financial goals, but new research from ING has found Aussies’ interest in the property market has hardly waned.

In a survey of 2,075 Australians, nearly half (44%) viewed property as the current strongest investment option and over a quarter (26%) believed now is the best time to get a foot on the property ladder.

“The research suggests COVID-19 has left many Aussies cautiously thinking about how they can invest to take greater control of their financial future,” said ING’s head of home loans, Julie-Anne Bosich.

“While, understandably, not everyone is in a position to use their finances to invest, our research has found that for those who are, the preferred investment choice is property, especially in the current climate where interest rates are at a record low.”

Among this property-hungry cohort, young Australians are well-represented. 25% of millennials surveyed said they are currently saving to purchase a home and 50% felt positive about their chances, with low interest rates and dipping prices the main drivers of confidence.

RELATED: Why a 1% difference in your home loan rate matters

Having fewer opportunities to spend has also worked out in Aussies’ favour, with 37% of respondents saving more than usual since the pandemic struck and 56% stating they are currently in a better position to achieve their financial goals.

As for where Australians are looking to buy, 28% of respondents are currently eyeing Melbourne, followed closely by Sydney (24%), Brisbane (17%), and the rest of New South Wales (16%).

It’s perhaps no surprise that Melbourne currently tops the list of most sought-after locations. According to property research firm CoreLogic, Melbourne property values have fallen a staggering 5.5% since March.

Since restrictions were eased and property agents given permission to resume onsite inspections, new listings in the city have jumped up by 330%.

“The result is likely due to months of pent-up decisions to sell from vendors, and reflects how the real estate transaction process has remained tied to physical inspections,” said CoreLogic head of research Australia, Eliza Owen.

If you’re looking to purchase an investment property of your own, be sure to check out our investment home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo

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Last updated 27 July 2024 Important disclosures and comparison rate warning*

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  • Basic Home Loan

    • Investment
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.34 % p.a.
    Variable
    Comparison rate
    6.36 % p.a.
    Initial monthly repayment
    $3,108
    Go to site

    No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.

  • Neat Home Loan

    • Investor
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.24 % p.a.
    Variable
    Comparison rate
    6.26 % p.a.
    Initial monthly repayment
    $3,075
    Go to site

  • Unloan Variable

    • Investment
    • LVR <80%
    Interest rate
    6.29 % p.a.
    Variable
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

    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 online in minutes.

  • Neat Home Loan

    • Investor
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.24 % p.a.
    Variable
    Comparison rate
    6.26 % p.a.
    Initial monthly repayment
    $3,075
    Go to site

  • Unloan Variable

    • Investment
    • LVR <80%
    Interest rate
    6.29 % p.a.
    Variable
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

    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 online in minutes.

  • Special Real Deal Home Loan

    • LVR<80%
    • Investment
    • Principal & Interest
    Interest rate
    6.29 % p.a.
    Variable
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

    Investors enjoy no monthly or annual fees to pay. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Make regular additional repayments and extra lump sum payments. Split your home loan into multiple loan accounts.

  • Flex Home Loan

    • Investor
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.29 % p.a.
    Variable
    Comparison rate
    6.53 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

  • Flex Home Loan

    • Fixed
    • Investor
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.29 % p.a.
    Fixed 3 years
    Comparison rate
    6.53 % p.a.
    Initial monthly repayment
    $3,092
    Go to site

  • Basic Home Loan

    • Investment
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.34 % p.a.
    Variable
    Comparison rate
    6.36 % p.a.
    Initial monthly repayment
    $3,108
    Go to site

    No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.

  • Offset Home Loan

    • Investment
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.34 % p.a.
    Variable
    Comparison rate
    6.59 % p.a.
    Initial monthly repayment
    $3,108
    Go to site

    Up to 10 offsets. Competitive rate tiers and interest only repayment option. No application fee. Split loan option. Fast, secure online application. $248 annual fee.

  • Basic Home Loan

    • Fixed
    • Investment
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.55 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,177
    Go to site

    Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.

  • Offset Home Loan

    • Fixed
    • Investment
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.55 % p.a.
    Fixed 3 years
    Comparison rate
    6.65 % p.a.
    Initial monthly repayment
    $3,177
    Go to site

  • SMSF Home Loan

    • LVR <70%
    Interest rate
    6.99 % p.a.
    Variable
    Comparison rate
    7.00 % p.a.
    Initial monthly repayment
    $3,323
    Go to site

    Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.

  • SMSF Home Loan

    • LVR <80%
    Interest rate
    7.49 % p.a.
    Variable
    Comparison rate
    7.50 % p.a.
    Initial monthly repayment
    $3,493
    Go to site

    Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for purchase and refinance. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 20% deposit required.

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* 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. You can change the loan amount and term in the input boxes at the top of this table. 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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