interesting article about the age of investors...usually older
Not surprisingly, investor households differ
from non-investor households in a number of
aspects. The survey revealed that investor
households tended to be somewhat older than
the rest of the population (Graph 1). The
median age of the reference person in investor
households was around four years older than
for non-investors, largely reflecting a greater
concentration of households in the 35 to
64 age groups, especially those aged between
45 and 54. The bunching of investors in the
working-age segment of the population
would be consistent with tax considerations
being one of the motivations for owning
investment property.
Investor households across all age groups
tended to have higher incomes than their noninvestor
counterparts (Graph 2). In line with
this, 71 per cent of investors were in the top
two household income quintiles and the
propensity to own an investment property
increased at higher incomes, with households
in the highest quintile being almost three times
more likely to own an investment property
than households in the middle quintile
(Graph 3). Associated with their higher
income, investor households were much more
likely to be working than their non-investor
counterparts, and especially to be
self-employed.
Not surprisingly, investor households were
also wealthier than non-investor households,
partly because higher wealth reflects property
ownership (Graph 2). More than half of all
investor households were in the quintile with
the highest net wealth, while only 2 per cent
were in the least wealthy quintile (Graph 3).
A conventional view of property ownership
is that households tend to purchase their own
home before buying an investment property.
The HILDA Survey provides some support
for this view, with 85 per cent of investor
households also owning their own home,
considerably more than the 68 per cent of
home owners in the general population. Still,
at 15 per cent, a surprisingly large share of
investors were households who rented, but
owned a residential property which they did
not normally reside in. The latter group tended
to be younger than those investors who also
owned their own home: the median age of
renter investors was 39 years, verNot surprisingly, investor households differ
from non-investor households in a number of
aspects. The survey revealed that investor
households tended to be somewhat older than
the rest of the population (Graph 1). The
median age of the reference person in investor
households was around four years older than
for non-investors, largely reflecting a greater
concentration of households in the 35 to
64 age groups, especially those aged between
45 and 54. The bunching of investors in the
working-age segment of the population
would be consistent with tax considerations
being one of the motivations for owning
investment property.
Investor households across all age groups
tended to have higher incomes than their noninvestor
counterparts (Graph 2). In line with
this, 71 per cent of investors were in the top
two household income quintiles and the
propensity to own an investment property
increased at higher incomes, with households
in the highest quintile being almost three times
more likely to own an investment property
than households in the middle quintile
(Graph 3). Associated with their higher
income, investor households were much more
likely to be working than their non-investor
counterparts, and especially to be
self-employed.
Not surprisingly, investor households were
also wealthier than non-investor households,
partly because higher wealth reflects property
ownership (Graph 2). More than half of all
investor households were in the quintile with
the highest net wealth, while only 2 per cent
were in the least wealthy quintile (Graph 3).
A conventional view of property ownership
is that households tend to purchase their own
home before buying an investment property.
The HILDA Survey provides some support
for this view, with 85 per cent of investor
households also owning their own home,
considerably more than the 68 per cent of
home owners in the general population. Still,
at 15 per cent, a surprisingly large share of
investors were households who rented, but
owned a residential property which they did
not normally reside in. The latter group tended
to be younger than those investors who also
owned their own home: the median age of
renter investors was 39 years, versus 49 years
for owner-occupier investors.
Graph 1
and this with the negative views by the younger ones.........
2). Young investor
households were much more likely to gear
their investment properties than older
investors: more than two-thirds of property
investors in the 25–44 year age group used
gearing. In addition, among those investors
with debt outstanding on investment
properties, the typical gearing ratio was higher
for younger investors. Young investors were
also more likely than older investors to report
receiving a negative net income on their
property investment: indeed nearly
50 per cent of investors in the 25–44 year age
group reported negative or zero net income
from letting their property. Interestingly,
26 per cent of residential property investors
in this age group were renters.
http://www.rba.gov.au/publicationsandresearch/bulletin/bu_may04/bu_0504_2.pdf