Aussie Investor Snapshot
New research provides insight into landlords and their role in the economy.
Across Australia there are 2.6 million investors holding property worth around $1.37 trillion, according to CoreLogic’s report:
Almost one-third of all housing is owned by investors, who provide the bulk of rental accommodation in Australia (just five per cent of new dwellings have been constructed by the public sector since 1984).
The report offers some key insights into Australian property investors:
- 15.7 per cent of taxpayers, or 2.03 million individuals, own a rental property
- On average, they own 1.28 investment properties
- 26.9 per cent of all housing stock is investor-owned
- 46.6 per cent of new mortgage lending is for investors
- 50-64 year olds are most likely to own an investment property
- 77.5 per cent of property investors aged over 65 are claiming net profits (82.8 per cent of 25-29 year olds are claiming a net rental loss)
- 67.1 per cent increase in residential property held in SMSFs between June 2011 and March 2016, totalling $24.4 billion in value
- 53.4 per cent of investor-owned dwellings have a market value of less than $500,000
- 48 per cent of units are owned by investors (compared to just 17 per cent of detached housing)
- 60 per cent of unit stock in Victoria and SA are owned by investors, it’s 50 per cent in NSW and Queensland
- Most investment properties are located in cities, mining and resources regions and tourism-centric coastal markets
- 30.5 per cent of all dwellings in Victoria are estimated to be investor-owned, 28.5 per cent in Queensland, 26.3 per cent in NSW, 17 per cent in Tasmania, 23.2 per cent in WA, 23.5 per cent in SA
- 42.9 per cent of dwellings in Darwin are investor-owned, Gold Coast (32.8 per cent), Melbourne (32.2 per cent), Sydney (28.9 per cent) and Brisbane (28.6 per cent) round out the top five locations
- 32.5 per cent increase in capital city dwelling values over the past four years, compared to 7.3 per cent rise in weekly rents, equating to an average 3.4 per cent rental yield
- 61.8 per cent of property investors claimed a rental loss in FY14, equating to $3.719 billion in losses (or $8,722 each on average), with those in the $60,000-$80,000 income bracket most likely to be claiming losses
- $51.2 billion in capital gains tax was paid in CY15
- $45.203 billion was paid in state and local government property-related taxes in FY15 (which equates to 50.6 per cent of all tax revenue)
Whether property investors fit the mould or break it, they can always talk to us about getting the right insurance product for their investment property.