Thought this might interest you lot as you’re probably helping make up the statistics…
21 May 2004 – One in seven property investors a tenant
Sydney Morning Herald, 21/5/04.Almost one in seven property investors is buying a house to rent out
before buying one to live in, a Reserve Bank survey shows. The survey
also provided a profile of the average property investor: self-employed,
older, own his/her own home and earn a higher-than-average income.
Fifteen per cent of investors pay rent themselves but own investment
properties. They are more likely to have debt on their investment
properties than owner-occupiers. Nearly 50 per cent of investors between
25 and 44 reported losses or no income from their investments. This
finding reinforces the Reserve Bank’s view that property investment in
Australia is designed to minimise tax, not earn income. The bank also
said generous tax breaks were major drivers of Australia’s property
boom.Liz
Mortgage Lender
Yes Lizzy- I am the one in 7
) I rent a place in the city, and own a couple of IP’s I do have huge debts on my IP’s, and I do make a loss on my properties *boohoo* [hair2]I fit the profile. I do think now that I’ll chuck more money when I have it into IP’s rather than a PPOR. Rent is reasonable here- not “dead money”, and I can make more from property than if I put my wages and rents into a PPOR.
What about you, Lizzy? Are you one of the the 1 in 7 too?
kay henry
No not at the mom, but I will be soon!
I’m moving to QLD shortly (from Syd) and I’m planning to buy out the place hee hee
I’m definately not in the old category though. Still a youngun [biggrin]
Liz
Mortgage Lender
Lizzy- I wonder what they call “older”. I am 37. I wonder do they mean baby boomers? And yeah, I checked out yor link to you- you are not old at all
Lizzy- where do you intend to buy up in Qld? Anywhere interesting? CF+? Neg gearing?
kay henry
I figured older is baby boomers too…
I’m only 24 – but I feel like a 40 year old sometimes with career and my workload!
I’m looking at Port D, but I think it’s gone ahead already, there are a few spots around there that are yet to be discovered, and Cairns certainly has some CF+ properties to offer.
At my age I am looking for capital growth areas primarily to build equity. I need to have a long chat to my accountant though, and gain a bit more knowledge as my company might like to buy some depriciating assets.
Long term I’m focusing on the business for passive income so I’m not as focused on CF+ like the rest of the forum (or so it seems).
Liz
Mortgage Lender
just looking thru forum and came upon this topic and wondered whether there was a concencus on whether it was better to accumulate investment properties while renting or owner occupying. We too are considering a move to the warms and are undecided what would be best – sell our existing residence in Melb and rent in QLD while applying capital to investment props or buy 1 to live in in QLD and “hopefully” have enough surplus for perhaps only 1 or 2 investments. Any comments would be welcome.[thumbsupanim]
Ray
Ray,
I think you will find that Steve, founder of the site and bookwriter, advises to buy investments first whilst renting… Kay might know more about this though? Is that what Steve thinks?
Ray me and you should read the book already [blush2]
I can’t wait to move to sunny QLD either! How far up are you going? It’s a big state, but maybe we’ll be neighbours![suave2]
Liz
Mortgage Lender
Ray and Lizzy,
Dunno about consensus- I am an independent soul :o) Look, if we could all afford our own home and invest in as many IP’s as we’d like- who wouldn’t?
I rent, I really love the area I rent in, and if I had to buy in this area, I would be living in a drain. It’s the only way I’m used to doing things. I’ve been renting since I was 19, and maybe this is life for me- I don’t mind (except that, much to my horror, I am having a RE inspection next month- how weird!!)
Lizzy- I don’t have a devotion to pozz geared property. The way I work it is like this. I love RE [blush2] and if all the property I have was yileding 10%, well, that would be fun
But there are so many places for sale, that I pick what I want to get. Location, year of property, rental yield, etc etc are all fundamentals to me. But I am not gonna buy the cheapest property I can find because of the rental yield. So I buy what I like and what I can afford ) There is nothing complex about it. I am not opposed to, nor am I in love with neg or pozz gearing. I just buy props that work out for *me* Property invesing is such an individual thing, I reckon I fall for hte property, not the ideology kay henry
Lizzie & Kay
Thanks for comments.
Planning to move to Bundaberg (had been Bergara until prices went through the roof). Loved Cairns when we were up there last year but bit too far from aging parents and other family.
Due to (unfortunately) changing circumstances we may now have to put our move off a bit. As a result we may look further to applying our existing equity toward IP’s as a starter
Ray
Kay, me two. I see it all the time in my line of work, as people are constrained by their work situations, commitments, employment status. It’s very interesting. I think my strategy will change over time, I don’t like easy answers or sticking to one rule either.
Bundaberg is lovely! Luckily all my rellies are up in Port D/Cairns and surrounds so it’s fantastic to have everybody there already.
Good luck with your IP’s – are you looking for them in Melbourne or interstate?
Liz
Mortgage Lender
At this stage just seeing whats around under teh “11 second solution” (rareties). Given our budget it would appear to be (at the moment) rural Vic or Bundaberg area (based on future proximity). we’re only kicking ourselves that we didn’t take some “gambles” last year when we were there as prices were around 20-50% lower. Oh well, “he who hesitates is lost” don’t they say. It just makes the current search a bit more difficult.
Ray
It’s so easy to kick yourself over missing the boat when you see things come and go – then go up and up and up.
As long as you hope onboard sometime and have some clues about where it is going it’s the best you can do isn’t it??
Liz
Mortgage Lender
OK a bit slow to respond here, but I rent in Sydney and have purchased in my home town of Perth. I share a house with 3 other people and pay only $70 a week! -Who said it was more expensive to live in Sydney! HA![king]
Same with me, if I had to buy in the suburb I live in id be living in a drain too! And my big screen tv wouldnt fit there! Besides, I work in the Security Industry and from my experience- drains arent very secure…[biggrin]
Luke [cap]
) I rent a place in the city, and own a couple of IP’s 
I do have huge debts on my IP’s, and I do make a loss on my properties *boohoo* [hair2]
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