New research conducted by Mortgage Choice reveals that Australian property investors continue to dominate the market, currently accounting for just over 30 per cent of all new loans, up from the 27 per cent recorded a year ago.

Mortgage Choice spokesperson Jessica Darnbrough observes that the spike in investor activity is not surprising as according to the company's latest First Time Investor survey, this type of buyer sees property as a lucrative investment opportunity as well as a way to future-proof their wealth.

According to Ms Darnbrough, the recent First Time Investor survey questioned respondents about their key motivating factors for buying an investment property; almost 79 per cent cited financial security for the future as a major motivator. Additionally, 58.4 per cent of investors said they saw more benefit in investments such as property, than they did in the share market.

Ms Darnbrough explains that the sentiment indicates this segment’s greater confidence in the Australian property market as well as their belief there are many benefits associated with owning an investment property. In fact, 49.5 per cent of Gen Y respondents said buying an investment property would help them prepare for retirement.

Ms Darnbrough believes this is the correct attitude towards property investment – to think long-term rather than see property investment as a quick win.

However, while investor activity as a whole is looking positive, rising property prices are making it harder for investors to buy on their own. According to the data, just 24.6 per cent of first time investors said they would purchase an investment property by themselves, which is down significantly from five years ago when one in every three investors (33.3 per cent) said they were planning to purchase alone.

Ms Darnbrough said rising property prices were largely to blame for the significant drop in the percentage of investors purchasing alone.

Research from RP Data shows property values climbed, on average, 10.1 per cent across the combined capital cities over the 12 months to July 2014, making it harder for individuals to invest in property on their own.