Invest
‘Accidental’ investors a growth market in 2019
New data suggests close to one-fifth of first-time property investors may have fallen into creating a property portfolio “by accident”.
‘Accidental’ investors a growth market in 2019
New data suggests close to one-fifth of first-time property investors may have fallen into creating a property portfolio “by accident”.
MCG Quantity Surveyors has found that 23 per cent of those with an investment property have lived in it initially as owner-occupiers, for an average of four years and 11 months.
According to MCG, data collected from the preparation of tax depreciation schedules revealed one-fifth of landlord clients stepped into property investment simply because they did not want to sell when the time came to change properties.
“Many of these owners seem to have fallen into their first investment, rather than made a strategic decision to become a landlord,” said Mike Mortlock, managing director of MCG Quantity Surveyors.
“It’s a fairly stunning result given the broad perception of property investors as a calculated, high-earning cohort set to tactically snap up all the available real estate.”
Mr Mortlock said the length of time these investors chose to stay in their initial homes shows that they were not strategic first home buyer investors, cashing in on stamp duty concessions or grants by living in the dwelling for the minimum period of time.
“Such a group always planned on being investors, but they would be a very small percentage of those in our research, otherwise the average resided-in period would much be lower than five years,” he said.
Mr Mortlock predicts Sydney and Melbourne’s dwindling housing market could give rise to more “accidental investors” looking to take advantage of house prices.
“Around 60 per cent of all property transactions in Australia occur in Sydney and Melbourne – two markets where price softening is now firmly entrenched,” he said.
“As such, one of the reasons a home owner in these southern capitals might choose to retain their old residence as an investment is because their hoped-for sale price is now less achievable."
Mr Mortlock also highlighted that it is this group who will likely be the most affected by changes to negative gearing and the capital gains tax should Labor be successful at the next election.
“Most of these landlords own just one property and are mum-and-dad style investors looking to get a financial step-up before retirement,” he said.
“It’s this group who will be most impacted by any future changes to negative gearing and capital gains tax, or upward movements in interest rates.
“In our experience, those with the largest property portfolios are the least likely to care about negative gearing or tax changes because they tend to be positively geared.”
RELATED ARTICLES
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
