Australian property investors now account for more than a quarter of the nation’s housing stock... Calls for 'drastic' change as rental affordability deteriorates...
Perception or reality: What does an Australian real estate investor really look like?
A deep-dive report into Australia’s real estate investors, CoreLogic’s new report - Profile of the Australian Residential Property Investor - estimates that Australia’s housing stock is made up approximately 9.6 million homes worth a combined $6.5 trillion, making it Australia’s largest asset class.
Of the total property market, investors account for 2.6 million dwellings with a combined value of $1.37 trillion.
Recent years have seen investors steadily increase their grip on the market, with CoreLogic’s report showing that as of April 2016 investors accounted for 26.9% of Australia’s residential market, up from 22.3% two years prior.
While there has been a heated debate in the lead up to the Federal Election on 2 July around housing affordability and the role investors play in that, CoreLogic research head Tim Lawless said yesterday’s release of report was to better educate those involved in that debate and not as a criticism or endorsement or policy proposals put forward by political parties.
“Given investors own almost one third of Australia’s housing and comprise almost half of the demand for new mortgage commitments, for politicians, investors and the public at large, having an understanding of the typical profile of the Australian property investor is important,” Lawless said.
Calls for 'drastic' change as rental affordability deteriorates
Low-income households in Australia are paying up to 85% of their income on rent, reinforcing calls for policy reform to address rental and housing affordability.
Under current market conditions, the Rental Affordability Index (RAI) – released in partnership by National Shelter, Community Sector Banking and SGS Economics & Planning – reveals low-income households typically need to pay 50 to 85% of their income on rent.
Ellen Witte, an associate at SGS Economics & Planning, said it is generally accepted that a household is in housing stress if it pays more than 30% of its income on rent. She told MPA's sister title Australian Broker that this could have alarming knock-on consequences on the broader economy and the Australian quality of life.
“When housing stress starts to occur, it starts to impact on the wider health and well-being of households,” Witte said.
“Households will have limited opportunity to spend income on food, bills, health and education. It is not only having an impact on the current generation, but even on the children of these rental households. Their children may have less opportunity for education and this may again impact of their future ability to earn incomes once they are adults.”
(Your Investment Property)
A deep-dive report into Australia’s real estate investors, CoreLogic’s new report - Profile of the Australian Residential Property Investor - estimates that Australia’s housing stock is made up approximately 9.6 million homes worth a combined $6.5 trillion, making it Australia’s largest asset class.
Of the total property market, investors account for 2.6 million dwellings with a combined value of $1.37 trillion.
Recent years have seen investors steadily increase their grip on the market, with CoreLogic’s report showing that as of April 2016 investors accounted for 26.9% of Australia’s residential market, up from 22.3% two years prior.
While there has been a heated debate in the lead up to the Federal Election on 2 July around housing affordability and the role investors play in that, CoreLogic research head Tim Lawless said yesterday’s release of report was to better educate those involved in that debate and not as a criticism or endorsement or policy proposals put forward by political parties.
“Given investors own almost one third of Australia’s housing and comprise almost half of the demand for new mortgage commitments, for politicians, investors and the public at large, having an understanding of the typical profile of the Australian property investor is important,” Lawless said.
Calls for 'drastic' change as rental affordability deteriorates
Low-income households in Australia are paying up to 85% of their income on rent, reinforcing calls for policy reform to address rental and housing affordability.
Under current market conditions, the Rental Affordability Index (RAI) – released in partnership by National Shelter, Community Sector Banking and SGS Economics & Planning – reveals low-income households typically need to pay 50 to 85% of their income on rent.
Ellen Witte, an associate at SGS Economics & Planning, said it is generally accepted that a household is in housing stress if it pays more than 30% of its income on rent. She told MPA's sister title Australian Broker that this could have alarming knock-on consequences on the broader economy and the Australian quality of life.
“When housing stress starts to occur, it starts to impact on the wider health and well-being of households,” Witte said.
“Households will have limited opportunity to spend income on food, bills, health and education. It is not only having an impact on the current generation, but even on the children of these rental households. Their children may have less opportunity for education and this may again impact of their future ability to earn incomes once they are adults.”
(Your Investment Property)
