Australia’s Typical Property Investor

Property Investor, the title paints a picture.  What we imagine is the typical property investor generally isn’t true. Rich full time property investors are few and far between.  The majority of residential property investors in Australia don’t actually rely on rental income as their main income.

The fact is, Australia’s residential property investment market is comprised of normal everyday people. People who, have bought their own home, then moved onto buying an investment property. This small-scale property investor own 83 per cent of all investment properties.

Research shows that real estate investors tend to be married, wealthy males with high income and full-time employment.

australian property investor

The usual property investor isn’t on a super high income. They might own one or two dwellings that bring in extra income. Residential property investors tend to be older but fewer are over sixty five. Corporate property investment is in the minority being only eight percent of the market.

With home ownership rates in Australia at around 70 per cent, the Australian Bureau of Statistics (ABS) reports that residential investment represents, on average, 35 per cent of all housing finance, while the rest are all owner-occupiers. This means residential investment is an important part of the mortgage market and banking system.

Most residential investment is centred around rent or resale; only a small proportion goes on construction of new homes. And residential investment by corporations or big companies represents only 8 per cent of the market.

Private data from a major mortgage provider used in my research (for the period 2003-09) reveals what the typical real estate investor looks like. They are on average 42 years old, 72 per cent are married, and fewer than two-thirds of investors get finance with a co-borrower. Only a third of investors are female.

Property Investor Retirement Goals

A Property Investor often wonder why some people make more money or faster progress to their retirement goals than others with similar or less effort? We believe in the power of leveraging not just assets but more importantly knowledge. We are talking about affordable housing specifically housing for key workers.

property investment and retirement

Property investment is a key method of creating retirement wealth

 MAcH 10 is going to illustrate how traditional property investment with an innovative and more durable approach provides worry free wealth creation.

A property investor bonus is a nice sense of satisfaction. Making money is good, making more money improving your community is better.

property developers and keyworkers

Key workers are the people that hold our communities together

Following is a little of the knowledge a property investor craves. You will be provided with an introduction to the strategies, principles and processes required for investing in residential property, whilst also providing an overview of some of the main risks associated with the purchasing of an investment property. Maxilife are providing you with the opportunity to invest in your own future with property.

The decision to leverage this knowledge with your existing assets, means together we can start making real in-roads into your financial future and building stability within our community.

Maxilife has developed a market changing offering to property investors. We have answered the investors demands and provided to the market the long awaited response to the concerns of the informed investors who ask questions such as the following about what will happen to their returns when;

    • Long lease up times and periods of vacancy occur between tenants.

    • No certainty a tenant will accept a rental increase and may vacant the property.

    • The manager charges both documentation and advertising fees to find you a new tenant.

    • Delinquent rent arrears not recoverable, reducing your returns.

    • Your rental yield reduces over time, due to wear and tear of the property as it ages.

    • Physical damage to the property incurring an insurance excess payment.

    • Poor management of tenants and property maintenance by the manager.

    • Contribution of your capital required to combat the long term property wear and tear.

In answer to these everyday concerns we are proud to be able to provide to the market a 10 year lease specifically designed with the affordable housing sector in mind that solves those concerns by bringing a commercial approach to the residential sector, the MAcH 10. This is a long term investment which is worry free, as there is no active management of the property or tenants by you, the property investors.

The economic benefits to a property investor

    • MAcH10 is not means tested, all investors and tenants are eligible.

    • Self Managed Super Fund compliant.

    • Your rental income starts the day after settlement.

    • No ongoing costs such as letting fees or advertising costs for the duration of the lease.

    • No vacancy for the lease duration, payment is made monthly in advance.

    • The Lessee, a large Registered Housing Providers (CHP) is responsible for payment of the rent, not the tenant. This is security of payment for you.

    • Expert property management includes regular inspections, repairs and general maintenance.

    • Valuation of the market rent at Year 1 and 6 with CPI rental increases in Years 2-5 and 7-10.

    • Many properties may be eligible for financial incentives negotiated by Maxilife.

    • Restoration provision within the lease that requires the lessee to make good wear and tear.

In recognition and exchange for providing to you these additional long term economic benefits, the CHP receive a 20% discount to the market rent to provide affordable housing. Typically we can demonstrate a superior return to both the asset value and the passing yield after 10 years for a MAcH 10 lease compared with the same property rented with a traditional residential lease.

Ask us to prepare a personal investment analysis for your individual situation. Fill out the form below.

Summary