I’ve been hearing on the news lately that Australia’s experiencing a shortage of homes. Along with this, headlines across the country are pointing the blame squarely at property investors as responsible for “buying up the nation”.
But while real estate continues to be the Great Australian Dream and the most popular choice to grow financial wealth, it’s actually not true that property investors make up a huge part of Australian real estate ownership.
In fact, investors currently own a smaller percentage than you realise (but they’re onto something!).
Here is a glimpse into who’s investing in Australia’s property market and some important insights around why it’s a smart move to join these investors.
Who is buying Australian real estate?
The Australian Taxation Office provides some insightful statistics into how many Australians are buying real estate.
According to their 2016-2017 data, a total of 2,156,319 Australians own 1 or more investment properties. It means that around 8% of the Australian population are property investors.
1,536,112 of these Australians have one property investment, while a total of only 407,971 people (or 1.66%) have acquired two investment properties – a significant decrease from the 6.24% of Australians with one investment property.
An even smaller number of 125,915 (0.51%) Australians have 3 real estate investments, while only 46,460 (0.19%) people have four properties, 19,504 (0.08%) people have five properties and 20,357 (0.08%) own six or more properties.
This information shows that it’s wrong to assume property investors are “buying up the nation”, as there are only less than 100,000 people Australia-wide with four or more investment properties.
Nevertheless, even though they are fewer in number than you may have thought, property investors are actually quite smart for putting their money into real estate.
Here’s why investing in real estate is a good strategy you should do too.
What are the benefits of property investing?
The reason why people get into property investing is because, when done right, it’s an effective way to grow your wealth.
This is because of the following benefits:
- Less risk – As a tangible asset, properties offer stability in value, unlike stock investments which can be more volatile.
- Tax benefits – Investing in real estate provides access to certain tax deductions.
- Protection from inflation – The value of properties generally rise with inflation. You can also consider increasing rental amounts too.
- A good source of cash flow – Property investments can provide a stable stream of income through monthly rent. Since people will always need a home, you can rely on the fact that the demand for houses will also continue to remain.
- Freedom of control – Property investing allows you to choose what kind of investment matches your goals (for example, a 2-bedroom house or a large 6-bedroom house).
Investing in real estate offers numerous benefits that many Australians can take advantage of, even in the long run.
That’s why it’s a great strategy to join the 1% of our population whose goal is to grow their real estate portfolio.
If you want to be among the top 0.08% of Australians who are maximising their returns through four or more properties, you can reach out to a trusted buyer’s agency like Worth Property Investing to help you.
We help you make smart property investment decisions. For more information, check out our “The 7 Deadly Sins of Property Investors” blog.
How can Worth Property Investing help you buy an investment property?
At Worth Property Investing, we partner with you throughout your investment journey.
Led by Simon Read, we are passionate about building a strategically sound and highly diversified property portfolio which can help you reach financial freedom.
As your trusted licensed property Buyer’s Agents, our experienced team guides and supports your property investing education, so you can achieve your property goals sooner.
Worth Property Investing can help you find the right property to meet all your requirements when considering your next purchase. We use real facts, due diligence and solid research to locate the right investments, and we have a proven track record to help you succeed.
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Don’t put it off any longer – contact Worth Property Investing today and start achieving your property investing dreams!