How does your property portfolio compare to other property investors?

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…

The 2019 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 89% of respondents to our survey already own an investment property and 46% owned 3 or more properties shows that we are surveying a group of more investment savvy Australians.

In fact 4% 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.
89% were property investors, the average number of properties owned was 3  and 4% owned 10 or more properties

 

 

While the vast majority of respondents owned properties in our 3 big capital cities, just over a third own properties in regional Australia:

 

Despite the vast majority of these investors investing for capital growth, only 33%  of investors held negatively geared properties suggesting that over time as rents increase, negatively geared properties become neutrally geared and eventually provide cash flow.

 

 

Is now a good time to invest?

68% of respondents believe now is a good time to invest.

Not surprisingly this is considerably more than the last few years (52% in 2018 and 59% in 2017).

Interestingly 20% of respondents (down a little from 23% last year) were unsure if it was a good time to invest in real estate. I guess they’re a little spooked by all the negative news.

 

Are you planning to buy an investment property in the next 12 months?

42% of respondents said they were planning to buy an investment property in the next year. Interestingly this is the same percentage as last year.

I would have thought the more buoyant market conditions would have increased the number planning to invest.

 

This year investors felt the best city to buy for capital growth was Melbourne (last year’s respondents said Brisbane.)

 

What’s the best property investment strategy?

Investing for “Long term capital growth” (49%) and “Buy, add value and hold for the long term ” (20%) remain the two most popular property investing strategies

 

 

 

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 42% of respondents said yes (down from 48% last year.)

 

When asked what their biggest stumbling block to investing would be 26% said loan serviceability.

This is down form 30.4% last year, reflecting the current easing in our lending environment.

The bottom line: 

It’s clear that property investor confidence is strong and those who can afford to are planning to take advantage of this new property cycle, buying another investment property or new home if finances allow.

Our survey shows that Australians property investors focus is on long-term capital growth, rather than cash flow and many are looking for a property that has potential to add value, rather than waiting for the market to do the heavy lifting.

Click here to read the full survey results.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

Sure our property markets are improving, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.

Why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?

We help our clients grow, protect and pass on their wealth through a range of services including:

1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

 

 

from Property UpdateProperty Update https://propertyupdate.com.au/property-portfolio-compare/