Australia's cashed-up baby boomers are keeping the property market afloat, according to the latest release of Wizard Home Loans Tomorrow's Property Investors series.
Wizard said the number of Australians aged 55 or over planning to invest in property over the next year jumped 37 per cent from 79,000 in the
December 2004 quarter to 108,000 in the March 2005 quarter.
Wizard Home Loans chairman Mark Bouris said the new data showed that the baby boomer group had proven to be less vulnerable to rate rises and changes in the property market than any other group.
"Boomers' commitment to property as part of their retirement savings strategy is unwavering," said Mr Bouris.
"They have a strategy and they largely keep to it and with higher levels of personal income and assets compared to younger generations, baby boomers help bolster the quality end of the market."
On the whole, the number of Australians intending to buy investment property in the next year dropped by 11 per cent to 596,000, returning to pre-boom levels of two years ago.
"The strength of demand from the baby boomer generation and steady demand from the 40 to 54 year olds is a big positive for the residential property investment market," Mr Bouris said.
He said the intending investors did not desert the market despite a rise in official interest rates during the quarter.
The data showed aged between 25 and 39 proved more susceptible to rate changes, with the number of intending property investors plunging from 334,000 in December, 2004 to 240,000 in the latest survey period.
"The March interest rate rise may have spooked people in this age group -- it's similar to the retreat we saw after the interest rate rises in late 2003," Mr Bouris said.
- AAP
