Investment properties could be snapped up by Gen Y

A large volume of first home buyers have been targeting investment properties with an eye to enter the housing market, according to industry commentators.

Dean Rushton, chief operating officer at finance broker Loan Market, says that his company has experienced a marked increase on the number of enquiries on mortgages for this type of dwelling in the last month - and that Generation Y has been a large part of it.

Rushton asserts: "Among all of our enquiries from first home buyers there has been a 15 per cent rise in the number of them looking to purchase an investment property."

He went on to say that members of Gen Y - those born after 1981 - were still very much interested in the great Australian dream of owning their own home but had decided to approach the concept of property management programs from a different angle.

Younger people looking to buy properties were found to be planning well in advance - saving for deposits and financially joining forces with friends and family to access better mortgages.

According to Rushton, the combination of high rental yields and a nine-month history of stable cash rates meant that first home buyers were finding the prospect of investment property to be a viable entry into the housing market.