NEWS
"Buying residential property in Australia is big business", according to property analyst Michael Matusik, and investors account for a substantial proportion of that business.
With one quarter of Australia's housing held by private investors, Matusik has conducted research to paint a picture of what those investors look like.
He says most are aged between 34 and 54 years old, most buy apartments as investments rather than houses and on average, the typical Australian investor holds 1.5 residential investment properties.
Nine out of 10 investors stick to buying in their own state or territory and two-thirds buy within a capital city, with inner-city locations the most favored. Three out of five investors borrow money to buy investment properties and most of those negatively gear their properties.
More than 80 per cent of Australian investors buy for long-term capital gain.
He notes that most investors expect property values to double every 10 years and a gross rental yield of more than five per cent.
Source: apimagazine.com.au
Published: 23 August 2010
