How does your property portfolio compare?

Ever wondered how you compare to the average property investor?

A new study has revealed the average number of investment properties currently held by Australian investors.

Before you compare yourself, here’s a disclaimer…

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The 2018 Property Investor Sentiment Survey was conducted as a collaboration of Michael Yardney’s Property Update Your Investment Property Magazine and onthehouse.com.au  and the fact that 88% of respondents to our survey already own an investment property and 45% owned 3 or more properties shows that we are surveying a group of more investment savvy Australians.

In fact 5% say they own 10 or more properties.

And clearly the results we found were different to what the average Australian owns.

Here’s what the average investor owns.

According the the ATO there are just over 2 million property investors in Australia.

Looking at it simplistically for every 100 people:

  • 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 properties

Our survey of subscribers to this site showed a very different picture.

  • Now that’s not surprising – our subscribers have an interest in real estate and many own a substantial property portfolio:

How Many Investment Properties Do You Own

  • While the vast majority of respondents owned properties in our 3 big capital cities, almost a third own properties in regional Australia:
 Where Are Your Investment Properties Located
  • Despite the vast majority of these investors investing for capital growth, only 38.5% of investors held negatively geared properties suggesting that over time as rents increase, negatively geared properties become neutrally geared and eventually provide cash flow.

Are You Negatively Geared

 

  • More than half of the respondents believe now is a good time to invest despite the fact that the vast majority of respondents (84%) believe that property prices will fall or remain flat over the next year. Clearly they are taking a long term view.
    However this is significantly down from last year when 61% of respondents thought it was a good time to invest.
    At the same time the percentage that were unsure increased to 23% (up from 16% last year.)

Is it a good time to invest in real estate?

Finance is a problem for most.

When asked if the recent changes in lending policies to investors has impacted their ability to purchase another property almost half of respondents said yes

Interestingly this is only slightly higher this year (48%) than last year (46%).

 

How Has Apra Affected You

When asked what their biggest stumbling block to investing would be, here’s how our readers responded:

Biggest Stumbling Block To InvetsingHow Has Apra Affected You

 

Click here to read the full survey results.

NOW READ: Here’s what property investors will be doing in 2019

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About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'How does your property portfolio compare?' have 2 comments

  1. Avatar for Property Update

    December 14, 2018 John

    With all the negativity and hysterical press out there it’s great to get a reasoned and balanced view from someone who is in touch with the real issues. I enjoy reading your articles , books and listen to your Podcasts, keep up the good work Michael, thanks John G

    Reply


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