The Australian property market has undergone a significant boom over the past few years, making it one of the key international markets to but into. People from all over the world have invested their money down under as a result, but what does the country's typical investor look like?
Writing in the Conversation, Maria Yanotti, a lecture in economics and finance at the University of Tasmania, explains that she has analysed a range of reports and data from various sources to find out who exactly is investing in the Australian market.
She found that the typical real estate investor is male, married and wealthy, usually with a full-time job. Just one-third of property investors in Australia are female, while 27 per cent are self-employed, suggesting that entrepreneurship and real estate investment may go hand in hand.
The average age of an investor is 42 and their net annual income comes in at around $103,000. The majority of investors also work with a partner, with almost two-thirds requesting finance in conjunction with a co-borrower, suggesting that only around one-third operate independently.
Data also shows that between 2003 and 2009, Launceston was the nation's property investment hotspot, with the highest number of deals coming from people in this area, closely followed by Mandurah and Connolly respectively.
What's more, Ms Yanotti looked at figures from the Australian Bureau of Statistics, which show that the property investment market accounts for more than one-third (35 per cent) of the country's total housing finance. Australia's home-ownership rate comes in at approximately 70 per cent, meaning real estate investment accounts for a significant proportion.
Ms Yanotti also explored the reasons behind why people tend to make property investments, finding research that suggests the Australian tax system motivates investors, as they are eligible for a 50 per cent deduction on their capital gains.
However, she noted that the driving factors are often much simpler, such as people purchasing holiday homes that they no longer use but want to keep as an investment, or wanting to move up or down the property ladder for a variety of reasons.
