Are You Australia’s Typical Investor?

Posted by Jack Guthrie

Australian’s are renowned for their love of property. Whether it be the savvy investor or the home improver, the majority of our population have some form of property interest throughout their life. Yet, there is a connotation that Australia’s property markets are owned through monopoly of the upper class.

Robust argument during the recent election discussed our property market in length, with the possibility of negative gearing reforms pitched as a way of cooling market demand. Throughout the discussion, Australian property investors were often depicted as overly wealthy and with extensive portfolios.

We have taken the privilege of looking into the raw data around property ownership in the country, with analysis from the Australian Bureau of Statistics shedding quite a contrary light on who owns what in our lucky contrary. The following points came as the most notable insights

Almost 1 million property investors with a sole investment property are negatively geared.
Only 11,349 negatively geared property investors have 6 or more investment properties.
Only 17,964 property investors earn >$500k of annual income. 9,984 of them (56%) have just one investment property.
The mode income bracket for property investors is $50k – $100k.
1,630,108 property investors in Australia have an annual income of $100k or lower (75.6% of all property investors).

What does this raw data tell us about Australia’s property market?

The average property investor in Australia is not what we would consider a high-income earner. Our nation’s average income is currently hovering around $80,000, over three quarters of the county’s investors earn within just $20,000 of this average.

Furthermore, the number of highly affluent investors is much lower than expected. The number of investors earning over $500,000 makes up 0.8% (17,964) of our country’s investor pool.

At Blue Wealth, we pride ourselves with being able to educate while following research to provide better investment opportunities. While being average income earners, 92% of our staff are keen property investors. The difference in our approach is market knowledge and education. Give yourself the best opportunity to climb the property ladder. Get into Blue Wealth and get educated.

Posted by Jack Guthrie, on 11th Jun 2019