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.
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.
