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.”

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more