Face Of The New Investor:

New survey found that 12.1 percent (one out of eight) of today’s home buyers plan to purchase a home as an investment property, compared with 5.6 percent in March 2009

Of those interested in buying a home as an investment, 15.8 percent were men and 8.1 percent were women.

There are 48 million Baby Busters, or Generation Xers, and 80 million Echo Boomers, also known as Generation Y. These individuals accounted for 78 percent of first-time buyers in 2008, according to the National Association of REALTORS®, and will be making second and third home purchases in the coming years.

The survey also found that buyers who plan to purchase foreclosures expect to profit both from deeply discounted purchase prices, as well as healthy appreciation rates over the next five years.

Most foreclosure buyers (58.2 percent) expect to pay 20 percent or less than market price for a foreclosure, while 38.5 percent expect a discount of 25 percent or greater.

While, 73 percent expect their properties to appreciate ten percent or more in five years, 28 percent expect their purchases to appreciate 20 percent or more during that same investment horizon