I have subscribed to Michael Matusik’s regular “Missives” for around 15 years. Michael is a residential property analyst and could best be described as brutally honest. A rare trait in the property game.
This week’s message from Michael had some interesting numbers that I thought you might appreciate (see below):
“There is a lot of noise being bantered about regarding property investment of late.
I don’t want to join the noise, but when I read or hear gibberish I always like to go back to the numbers.
So just how many Australian households hold an investment property? And who are these cats?
A quick summary
- There are 9 million dwellings in Australia
- 7.2 million are held by owner residents
- 1.8 million are held by investors
- So, 20% of Australian households hold an investment property and 80% don’t.
The top investor age groups are:
- 25% are aged between 55 and 64 years
- 24% are aged between 45 and 54 years
- 22% are aged between 35 and 44 years
- And just 15% are aged under 34 years
When it comes to the investment property’s value (in today’s dollars), investor’s think that:
- 35% are worth between $250,000 and $500,000
- 18% are worth less than $250,000
- 18% are worth between $500,000 and $750,000
- And 6% think their investment property is worth over $2 million. Hmmm, tell them there dreaming!
And finally, how many investment properties do investors hold?
- 73% hold one investment property
- 17% hold two investment properties
- 6% hold three investment properties
- And just 4% hold four or more investment properties
To add the numbers to this spread:
- 1,309,000 hold one investment property
- 302,000 hold two investment properties
- 104,000 hold three investment properties
- And just 85,000 investors hold four or more investment properties. For those who like to make comparisons, some 85,000 people live in Mackay or Launceston.”
The NSW and Federal elections have certainly put a blanket over the property market over the last few months. However, we have received a very large number of pre-approval applications over the last 2 weeks. Whilst most of these applications have come from people seeking to buy a home, around 25% are from investors, which is a positive sign.
Please give me a call or shoot me an email if you would like to discuss your finance options.