There is a lot of noise being bantered about regarding how much money it takes to be rich in Australia.

And there’s often fuss made about all those rich greedy property investors.

So just how many Australian households hold an investment property?

The Australian Taxation Office recently released their latest stats on property investment, so let’s see how rich property investors really are.

Here is a quick summary…

According to Corelogic:

• There are 10.5 million dwellings in Australia with a total value of $7.1 trillion
• There is a total of $1.85 trillion in outstanding mortgage debt.
• 5% of Australian household wealth is held in housing

The Australian taxation office tells us that in the 2017-8 tax year (the latest statistics available)

• There are 2,207,893 property investors in Australia
• This means around 20% of Australian households hold an investment property and 80% don’t.
• The top investor age groups are:
  • 83% are

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When it comes to the property market, many experts assure us that past performance is the best indicator of future performance.

But if we actually look at how they use past performance to make their forecasts, we immediately come across a huge contradiction.

Only buy in areas that have stood the test of time

One group of experts claim that we should only buy properties in suburbs that have “stood the test of time”.

They say that their high performance in the past offers us not only the greatest level of security, but the best prospects of continued price growth into the future.

This is based purely on the expectation that high past performance predicts future performance.

This seems logical, except that there are many suburbs and towns where housing markets have boomed for years, only to crash without warning.

In fact, every boom has ended at some time, even … Read more

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