1.6% of Australians own 2 investment properties.
Here's how many properties investors hold in Australia: 71.5% of investors hold 1 investment property. 18% of investors hold 2 investment properties.
According to the ATO, Australia has 2,156,319 property investors, most of whom own just one property. The ATO figures show that 71% of people who own investment property have just one, while a further 19% own two properties. Less than 1% of investors own five properties and less than 1% own six or more properties.
Here's how many properties investors hold in Australia: 5% of investors hold 1 investment property. 18% of investors hold 2 investment properties. 7% of investors hold 3, 4, or 5 investment properties.
That 7% also have three or more interests in investment properties across the country, with 1% of investors – or just 19,895 people – currently holding six or more investment interests.
There are only 45,162 (0.19%) people with four properties; 18,863 (0.07%) people with five properties and 19,967 (0.08%) with six or more properties. This means that there are less than 100,000 people Australia wide with four or more investment properties. A very rare club indeed!
88% of respondents already own an investment property and 45% owned 3 or more properties. In fact 5% say they own 10 or more properties.
19% of recent homebuyers own multiple properties: Survey.
Assuming that the average mortgage age in Australia starts somewhere between 25 and 34 years, then to work out the average age to pay off a mortgage in Australia, you just need to add a 25 to a 30-year term. This would make the average age to pay off a mortgage in Australia between 50 and 64 years.
The Average Landlord Has Three Properties
On average, landlords have three properties to their name. The value of those properties isn't necessarily through the roof: 40% of landlords own less than $200,000 worth of property, and an additional 30% fall in the $200,000-$400,000 range.
Second home ownership statistics show that 6.02% of individuals aged 30–49 own a second home. This age group has a higher second home ownership percentage than those aged 18–29 and 50–64, whose rates are 4.68% and 4.13%, respectively.
The data show the median household had a net worth of $579,200 in 2019-20. This figure captures the total value of assets such as real estate, shares and superannuation, and deducts a household's liabilities such as credit card debt and home loans.
Home ownership data from the 2021 Census show a home ownership rate of 67%, down from 70% in 2006. While the home ownership rate remained around 67–70% from the early 1970's, the rate for different age groups has varied markedly over this time.
In some parts of Australia, you could own ten investment properties with a total value of less than $2 million, whereas in Sydney or Melbourne you may end up with only two properties (or less) for that value.
In conclusion, you will need to own your own home plus at least three debt-free rental properties to have a modest retirement. Beyond that point, each additional property will add to your comfort and when you have six or more rental properties you can start breathing easily.
The person who holds the most land in this pastoral-lease data, by far, is the Western Australian mining magnate Gina Rinehart, who controls 9.2m hectares, or 1.2% of Australia's landmass, through three different corporate entities. The biggest corporate landholder is the ASX-listed Australian Agricultural Company.
A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.
Age doesn't matter. Counterintuitive as it may sound, your loan application for a mortgage to be repaid over 30 years looks the same to lenders whether you are 90 years old or 40.
Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.
Out on top, with 43% of 4,159 workers, surgeons are the most prolific property investors. Second and third on the property investment list are anaesthetists and internal medicine specialists, with around 40% having declared rental income from property investment in 2019-20.
Average real estate return on investment
The average rental yield in Australia is around 8%, with 1% accounting for ongoing costs like dues, strata and insurance fees.
A further 25% were renting from a private landlord and 4% were renting from a state or territory housing authority. Between June 1995 and June 2015, the proportion of households without a mortgage declined from 42% to 31%, while the proportion with a mortgage rose from 30% to 36%.
Age Groups & Homeownership
Homeownership rates double between the ages of 25 and 29, and 70 and older are the most likely to be homeowners. The average homeowner is 56 years old. 23.4% of homeowners are between 55 and 64 years old.
The 2022 Land Report 100, compiled each year by The Land Report magazine, released its annual list of landowners who own the most acres in the United States. The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres.