Key takeaways
Investors have become an easy target in media and politics, often blamed for housing affordability issues.
The narrative of “greedy landlords locking out first-home buyers” fuels an unhelpful “us vs them” mentality.
In reality, investors provide a crucial service that supports the housing market.
In Australia, private investors provide the majority of rental housing, unlike other countries where governments play a larger role.
The government has fallen short in delivering sufficient social housing, leaving the responsibility to private landlords.
Without private investors, millions would struggle to find a home.
It seems like property investors have become the punching bag of choice lately.
The media loves to portray us as greedy landlords, politicians use us as scapegoats for the housing crisis, and some believe we’re locking first-home buyers out of the market.
In fact, in the five decades I’ve been involved in property, I’ve never seen as much of an “us and them” mentality — with investors on one side and renters or first-home buyers on the other.
But this is a flawed narrative.
Because here’s what’s too often forgotten: property investors are not the villains — we’re a critical part of the housing solution.
We’re providing a vital service by housing a significant proportion of Australians who, for various reasons, either can’t or don’t want to buy their own homes.
While overseas, the government often provides this service, in Australia it is left to rental property providers - mums and dads who run a small business providing long-term accommodation.
Let me explain…
Not everyone wants, or can afford to own a home
It’s easy to assume that everyone aspires to own their own slice of the Australian dream — the house with the picket fence. But reality paints a different picture.
According to a recent Australian Housing and Urban Research Institute (AHURI) report, only around 55.4% of private renters believe they will ever own property in Australia. For public renters, that figure drops to just 26%.
Even more telling is that 44% of public renters and 15% of private renters admit they never expect to buy a property.
This signals a significant shift in Australia, where the dream of owning a home is no longer seen as a given.
In fact, many Australians are recognising that renting offers them flexibility and lifestyle options that homeownership simply cannot.
This tells us something important: renting isn’t just a temporary stopgap anymore. For many Australians, it’s a long-term reality or even a lifestyle choice.
In fact, around 10% of renters are also property investors themselves — what we now call “rentvestors.”
So, yes, some people are obviously renting by choice. However, many more are renting out of necessity.
Why are people renting?
While some renters may choose to rent for lifestyle reasons, the AHURI report makes it clear that financial factors are the primary motivator for most tenants.
The findings in the chart above clearly indicate that not all tenants are currently interested in buying a home, which reinforces my earlier comment that property investors provide an essential service for this significant portion of the Australian population.
- 23% were renting because they couldn’t find anything suitable to buy a present present.
- 18% preferred renting to buying
- 14% found they could live in a better quality property when renting
- 11% found renting cheaper than buying
- 11% were renting in a better lifestyle location and they could afford to buy
- 8% were renting because of a change in their personal relationships
- 7% were renting to retain flexibility
- And 5% were renting for vocational-related reasons
The rise of “rentvestors”
Another interesting trend emerging from the AHURI research is the rise of rentvestors — people who rent the homes they live in while owning investment properties in other locations.
These rentvestors are usually mid-career professionals with families who choose to rent for lifestyle reasons, such as living closer to work or in more desirable suburbs, while investing in properties that provide better returns elsewhere.
This trend challenges the traditional narrative that renting is purely a stepping stone to homeownership.
For rentvestors, renting is a deliberate choice that enables them to capitalise on the benefits of property ownership without compromising their preferred lifestyle.
Property investors are housing providers
Now, here’s where property investors play a crucial role.
With a growing segment of Australians either unable or unwilling to buy a home, someone needs to provide the rental housing they rely on.
The government has been notably absent in filling this gap, especially with social housing falling short of demand.
This is where private landlords step in.
Property investors are effectively the residential property providers for millions of Australians.
And unlike many other countries where governments take the lead in providing rental housing, in Australia, it’s mum-and-dad investors who carry that burden.
Think about it: the government has clearly failed to meet social housing demand.
There’s a massive shortfall. And without private landlords stepping in to provide rental properties, millions of Australians would be left without a roof over their heads.
Yes, investing in properties is a business decision, but it’s also a service population that needs stable housing.
So, stop picking on property investors and demonising them!
- Also read:This week’s Australian Property Market Update – Latest Data, State by State July 8th 2025
- Also read:Melbourne property market forecast for 2025 | Is it a good time to invest in Melbourne?
- Also read:Latest property price forecasts for 2026 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Brisbane Property Market Forecast [2026] – What’s Ahead & Where to Invest
- Also read:Sydney property market forecast for 2026. Is it a good time to invest in Sydney?
So what do investors contribute to the community?
Now, let’s take this further.
You see…investors are not just housing people - they are also paying an enormous amount in taxes. And I’m not just talking about income tax.
Here’s a breakdown of how over 2.2 million property investors in Australia are supporting the economy and our communities.
1. Federal Taxes
Income Tax on Rental Income:
- Investors declare over $53 billion in gross rental income each year.
- After deductions, the taxable amount is approximately $10 billion, resulting in federal income tax of $3.5 to $4 billion.
Capital Gains Tax (CGT):
- When an investor sells a property at a profit, they pay capital gains tax (CGT), often after holding it for years.
- This generates an additional $5 to $6 billion annually for federal coffers.
2. State Taxes
Stamp Duty:
- Paid upfront when buying property — often 4–6% of the price.
- With around 30% of all property transactions involving investors, that’s $10 to $14 billion in revenue alone.
Land Tax:
- Investors (not homeowners) pay this annually on most properties.
- This tax brings in over $15 billion, almost entirely from landlords.
3. Local Taxes
Council Rates:
- Every investment property is subject to local council rates.
- These typically range from $1,500 to $4,000 per year.
- That means investors contribute an estimated $5 to $8 billion annually to local services.
4. Other Charges
GST (Goods and Services Tax):
- Paid directly or indirectly on new property purchases and services related to running their “investment business.”
- Although it is difficult to pin down exactly, it has been estimated that property related GST from investors and developers contributes between $2 billion and $4 billion annually.
In other words: Property investors pay upwards of $40 billion a year in taxes.
Yes, you read that right.
That’s not rorting the system. That’s funding it.
Property investors are contributing to hospitals, schools, roads, local infrastructure, and social services — and at the same time, they’re housing a third of the country.
The future of renting in Australia
So, where does this leave us?
The reality is that the Australian property landscape is changing.
With affordability barriers continuing to rise, renting is no longer just a temporary solution for young people saving up for their first home.
It’s becoming a longer-term option — even a lifestyle choice — for many Australians.
The AHURI report highlights that only half of Australians now believe they’ll ever own a home.
This shift in expectations and priorities means the demand for quality rental properties is only going to increase.
And who is best placed to provide that housing?
It’s not the government, which has been slow to address the need for social and public housing.
It’s the property investors who are willing to take on the risk and invest in the rental market.
Investors are part of the solution, not the problem
While it’s easy to paint property investors as part of the housing affordability problem, the truth is they are a critical part of the solution.
By providing much-needed rental accommodation, they are filling a gap that the government and public housing sector cannot meet.
Yes, property investment is about building wealth, but it’s also about providing a service.
Without private landlords, where would the millions of Australians who can’t or won’t buy a home live?
In a country where the rental market is an essential and growing part of the housing system, investors are the unsung heroes, ensuring that people have roofs over their heads.
So, next time you hear someone bemoan the role of property investors, remember — they’re offering a service that’s more critical than ever in today’s uncertain housing market.
And whether the critics like it or not - they are essential to Australia’s housing future.
