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How many properties does the average investor own?

Two minute read. property

Yawn. 

Yes, reading about tax stuff is, well….like watching paint dry.

No, much worse.

So, I will keep this short and sweet.

These stats might surprise you.

If I was to summarise the latest taxation statistics in a simple form – say, as 100 people, then:

  • 16 own an investment property
  • 84 don’t

Of the 16 that own a property investment, again, using the 100 people as the base, then: 

  • 76 had a rental loss (they negatively geared)   
  • 24 had a net rental profit
  • 71 owned just one investment property
  • 19 owned two properties
  • 6 owned three properties
  • 2 owned four properties
  • 1 owned five properties
  • 1 owned six or more investment digs

If we now looked at changes over time, we find that:

  • Ten years ago,12 out of 100 owned an investment property
  • Three years ago, 14 did
  • Last year, 15 did
  • This year, 16 do

When revisiting the stats from three years ago,

The growth in the size of the investment market by properties held has changed like so:

  • One investment property – up 5%  business man writing new house on beautiful green field use for multipurpose
  • Two properties, up 9%
  • Three properties, up 10%
  • Four properties, up 11%
  • Five properties, up 13%
  • Six or more investment property assets, up 12%
  • And ten years ago, hardly anyone made a rental loss.

Some end notes

Property investment is on the increase.

Those with existing investments are buying more properties.

Most negatively gear.negative_gearing-

This trend is increasing.

Most investors are dependent on capital gains to make their efforts worthwhile.

They are proudly on the property ladder.

But given that we appear to be approaching a property snake, now might be the best time to do something about negative gearing.

However – again – negative gearing has been tossed into the too hard basket.

Yet, with low interest rates, the cost to the budget is at a low point – and as interest rates inevitably rise (over the medium to longer term), so, too, will the cost to the budget from revenue lost.

For mine, the time to move is now. house real estate

Failure to do so will cost the government much more in the future.

It will also be much harder to move, should the practice of negative gearing become even more entrenched.

We have secured 100 copies of the latest edition of Michael Matusik’s Capital Cities Market Outlook Report” for just $99 plus GST. 

This is a 33% saving for readers of Property Update! 

Please hurry, as we have been allocated limited numbers of these reports at this price.  Please click here now to secure your report and use the code: YARDNEY2017 



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About

Michael is director of independent property advisory Matusik Property Insights. He is independent, perceptive and to the point; has helped over 550 new residential developments come to fruition and writes his insightful Matusik Missive


'How many properties does the average investor own?' have 2 comments

  1. Avatar for Property Update

    May 9, 2017 @ 8:28 am Hamish

    Just think of all the stamp duty paid on those investment properties; not so sure about the latent Capital Gains waiting to be taxed in the future.

    Reply

    • Avatar for Property Update

      May 9, 2017 @ 8:30 am Michael Yardney

      You’re right Hamish. Stamp duty had made a huge difference to state government budgets

      Reply


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