There has been an increase in buy-to-let commercial mortgage applications from people aged between 20 and 29.
Allison Thompson, the managing director of Leaders property specialists said:
“Young people are increasingly realising the numerous benefits associated with investing in property and are acting decisively to start their own portfolios.”
There may be a perception that buy-to-let investing is exclusively for older and wealthier people. The largest group of buy to let investors is between 40 and 49 years old, but the number of people over 60 applying for buy to let mortgages has dropped. The increasing number of 20 to 29 year olds investing demonstrates that there is no fixed age for property investing. There has also been a growth in the number of investors between 30 and 39 years old.
Some young people are choosing property investment over traditional pension investments to plan for an income when they retire. Over the last ten years, property prices have risen by 22% and investors hope that house price rises will continue. Property in the right location can generate good rental incomes.
Some younger people are attracted to putting their money in bricks and mortar that they can see, rather than in investment funds that seem to consist of digits hidden in computers. There can be enjoyment from being a landlord and interacting with tenants.
Some lenders provide mortgages for first time buyers, young people who want to gain an income rather than live in their purchased home.