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Who Is The Average Australian Property Investor - Do You Fit The Bill?

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Do you know who the average Australian property investor really is? Contrary to popular belief, it’s not the super wealthy property speculator buying up rentals left right and centre. In fact it could be your next door neighbour, the one who’s drinking XXXX and firing up the barbie. Don’t believe us? Let’s take a look at some stats to see if we can put together a clearer profile of this person….

ASX Demographics 

A recent Australian investor study by the Australian Securities Exchange (ASX) analysed a representative sample of the Australian population. It breaks down the percentage of people holding investment property into three demographics:

  • Next Generation (25%)
  • Wealth Accumulators (42%)
  • Retirees (26%)

It’s safe to say looking at these stats that the people who want to accumulate wealth are by far the largest number of people investing in property. But it doesn’t tell us much detail about these people except that they’re aged somewhere between millennials and retirees.

ATO Statistics 

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The Australian Tax Office (ATO) paints a slightly clearer picture of the average Australian property investor. ATO research shows most people with a rental property were in the lower tax brackets and declared a taxable income of under $80,000. They also said new investors were aged between 40-59.

So the average property investor may not be finding it difficult to make ends meet but they’re not super wealthy either, and the age fits in with what ASX study suggests.

Corelogic Investor Report 

CoreLogic released an indepth 44 page property investor report in June last year which highlighted the fact that there are 2.03 million individual investors in Australia.

It pointed out that “most property investors own only one rental property, with an average of 1.28 investment properties per investor”.

The report found that the average Australian property investor, earns “a taxable income between $60,000 and $80,000” and that “50 to 64 year olds are the most likely to own an investment property”.

These figures pretty much match the ATO statistics in terms of income, though the ATO puts the starting age of the average Australian property investor at a slightly younger 40 rather than 50.

Conclusion

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From looking at the data it appears that most property investors in Australia are middle aged individuals and couples on an average salary who are careful with their money and who have goals to accumulate wealth.

They usually own one investment property and may be looking to purchase another. The main reason they’re interested in owning a rental property is to create a better future for themselves in retirement and see bricks and mortar as a safe investment.

Do you fit the bill for real estate investment in Australia? If so, Bricks+Agent can help you find a local agent to sell or lease your investment property. Register now it’s 100% free. You can also download our homeowners guide to finances with actionable insights on Australia's property market.

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Topics: Better Selling

Jon Stul

Written by Jon Stul

Having spent over 12 years in the real estate industry covering all facets from residential through to commercial, established and off plan properties and sub-divisions, he has an in depth knowledge of the industry. Stepping out of the industry four years ago and moving interstate to expand a frozen yoghurt chain that has gone from 1 to 4 stores in the time he has been involved. This was recently sold to Made Group. Real estate has always been in his blood and it was a natural fit to start Bricks + Agent given the amount of insight he has into the industry as a whole. Having seen how all different forms of traditional marketing was used to the direction that it is now heading today, we think we have come up with a truly unique proposition that fits into the current state of the property maintenance market.

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