Real estate investors are not who many people think they are

Real estate investors are painted as greedy money-grabbers, but in reality they are much more likely to live on your street and earn a wage similar to you.

Nurses are number three on the ATO’s list of property investors. Picture: iStock

The nation’s 2.3 million residential real estate investors are often painted as greedy money-grabbers, but in reality they are much more likely to live on your street and earn a wage similar to you.

As we approach a federal election year with a government that has form in wanting to hit landlords harder, it’s worth taking a look at who our property investors really are.

Statistics from the Australian Taxation Office show that the top eight occupations for Aussie landlords include some of the most regular workers you will find – nurses at number three, office managers, admin assistants and teachers.

Electricians, sales assistants, truck drivers and police officers also make the top 20 list that is headed by general managers and CEOs.

Custodian Wealth Builders managing director James Fitzgerald says an interesting fact in the ATO figures is that more truck drivers own rental properties than solicitors.

“And real estate agents, often thought to lead the charge, come in at a respectable number 14, which may be lower than some would expect given their profession,” Fitzgerald says.

About half of Australia’s landlords have below-average incomes, he says.

“The truth is successful property investing isn’t just about how much you earn – it’s largely about the strategy and approach you adopt.”

Separate ATO statistics show that more than 71 per cent of real estate investors have just one property, and fewer than 4 per cent own four or more rental properties.

Among people who own just one rental property, almost two-thirds have annual incomes below $100,000.

All these stats show that many landlords are average Australians just trying to build a better life for themselves and their families through the power of property.

The richest real estate investors are more likely commercial property owners whose purchase prices are much higher, or people with self-managed superannuation funds containing large sums of family wealth.

However, today’s tough real estate market puts a target on the back of anybody who invests – simply because there are so many people struggling to buy their first home, and others who have given up on property ownership altogether because of soaring prices and interest rates.

It is these strugglers that the Greens and Labor say they are sticking up for with policies designed to punish property investors. The Greens have constantly called for rent freezes despite soaring interest rates pushing up investment loan repayments too.

People who hate property investors often don’t realise who they really are. Picture: iStock

And while Labor looks unlikely to follow the same path that arguably cost it the 2019 election – when Bill Shorten wanted to change negative gearing and capital gains tax – many investors are on edge about what is in store for them in the coming election campaign.

Nurses, teachers and police officers buying an investment property are not the biggest problem keeping young first home buyers out of the market.

Low supply and high demand is the culprit, and demand continues to rise as record migration levels continue. We’re on track for another 500,000 new migrants this year, bringing the three-year total to 1.5 million.

That’s a lot of people wanting a place to live, or rent, or invest in.

Originally published as Real estate investors are not who many people think they are