About a third of Aussie properties owned by investors
About one third of all properties in Australia are owned by investors, new research has revealed.
A new study by CoreLogic found property remains the biggest asset class in Australia, News Ltd has reported. The Australian property market is worth $6.5 trillion, up from $6 trillion in August of last year.
Nearly a third of this is represented by investors, the CoreLogic analysis found, with some Australian cities seeing investors disproportionately represented.
Darwin had the highest proportion of investment properties, at 43%. The Gold Coast was also found to be investor-heavy, with 32.8% of properties in the hands of investors. Investors represented 32.2% of properties in Melbourne, 28.9% in Sydney and 28.6% in Brisbane, News Ltd reported.
CoreLogic head of research Tim Lawless said the majority of Australians own only one investment property, and that the majority of these properties are worth between $300,000 and $500,000.
Lawless said that while investors claimed $37.19 billion in losses for the 2013/14 financial year, this was down on previous years, largely due to lower interest rates.
“As interest costs reduce, the ability to claim a rental loss reduces because the interest deduction is overwhelmingly the single largest deduction available,’’ Lawless said.
As interest rates move lower, Lawless predicted rental losses are likely to reduce further.