The truth about Aussie property investors

The world of property investment is not limited to the super rich portion of the population but instead, owning a property is far more achievable than Aussies think.

In fact the recent research, undertaken by LJ Hooker, shows that the size of your pay packet bares is no limitation on your house-owning dreams.

Most surprisingly, data shows that of 1700 landlords surveyed in Australia, 37 per cent of landlords have a household income of under $100,000, 29 per cent of respondents earned an annual income of between $100,000 and $150,000 and 34 per cent had an income over $150,000 per year.

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The report also shows that landlords view capital growth as a more important factor than rental returns when investing in a property – around 27 per cent of those surveyed said capital growth was the main motivation for their property investment, compared to 15 per cent which pointed to rental income for their main driver.

The significance of capital growth also correlated with how investors use property to build their personal wealth as they get older.

Respondents aged 35-44 owned on average more than two properties, while landlords aged 55-64 owned on average three.

“But once the landlord sample reached the age of 65, there was a sharp declined in property ownership as landlords divested some of their portfolio to fund retirement,’’ LJ Hooker National Research Manager Mathew Tiller said.

“Property investment is most successful when a long-term vision that transcends property cycles is embraced.”

The survey results also highlighted the importance of negative gearing for property investors, with 55 per cent of respondents saying that it was either important or very important in their investment strategies.

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Should negative gearing be abolished, 31 per cent said they would sell some, or all, of their properties.

“The negative gearing debate receives significant debate because of the perceived impost on the tax base,’’ Tiller said.

“But it’s evident to see how important it is for investors. It is also important for the economy, encouraging investors to inject money into the economy, driving jobs and supporting local communities.”