Many Australians are feeling the pinch on their finances at a time when the cost of living is so high. There are many discussions around about what it takes to be considered rich.
Whenever this topic is discussed, a lot of attention is focused on the so-called greedy property investors who are buying all the affordable properties and leaving little for others.
Homeownership statistics in Australia
According to Corelogic:
- There are 10.8 million residential dwellings in Australia,
- The residential market in Australia is worth $9.7 trillion,
- The outstanding mortgage debt on these properties totals $2.1 trillion,
- Housing accounts for 57.3% of Australian household wealth
In 2019-20, over 20% of Australia’s 11.4 million taxpayers owned investment properties, according to new data released by the Australian Taxation Office (ATO). By including 3.6 million non-taxable individuals, that figure rises to 14.9%.
A total of 3.25 million investment properties are owned by 2.22 million Australian taxpayers.
54% of the 2.22 million property investors reported a net rental loss during the 2019-20 financial year, based on their negative gearing.
Here’s how many properties investors hold in Australia:
- 71.5% of investors hold 1 investment property
- 18% of investors hold 2 investment properties
- 9.7% of investors hold 3, 4, or 5 investment properties
- 0.8% (or 19,895) of investors hold 6 or more investment properties
In addition, the data shows that the majority of investment properties are now owned by ‘working age’ Australians, rather than older Australians.
The top investor age groups are:
- 24.5% are aged between 55 and 64 years old
- 22.5% are aged between 45 to 54 years old
- 21.5% are aged between 35 to 44 years old
- 12.5% are aged between 25 to 34 years old
- 12% are aged between 65 to 74 years old
- 5.5% are aged 75 years old or more
- 1.5% are aged between 15 to 24 years old
If you’re still on the fence about your next property transaction, we get it. It’s a huge decision that deserves all your careful consideration weighing up the advantages and disadvantages of either scenario.
