There are over 2.2 million property investors in Australia, according to the Australian Tax Office’s (ATO) most recent statistics, for the 2018-19 tax year.
However, the vast majority (90.3%) of investors own only one or two investment properties.
Percentage of property investors holding:
- 1 investment property = 71.4%
- 2 investment properties = 18.9%
- 3 investment properties = 5.8%
- 4 investment properties = 2.1%
- 5+ investment properties = 1.8%
Dig a little deeper into the ATO records, and you’ll find those percentages have hardly changed in years.
This leads us to the obvious question. Why do so many Australian investors seemingly get stuck at only owning one investment property?
I’m willing to hazard a guess that, for many, the first investment property they bought wasn’t the right one at the right price. As such, they couldn’t leverage equity to add to their portfolios.
So what’s this got to do with borderless investing?
The right investment property could be located anywhere
A common mistake many first-time investors make is neglecting to look outside their home state when looking for a property. After all, the closer the property is to you, the easier it is to check up on it – right?
The thing is, you should buy the best asset you can afford. That means focusing on hard data, not proximity. Location is irrelevant.
Australia’s a big country with hundreds of cities and towns. Each of those has its own real estate market at a different stage in the property cycle. That means quality, positive-cashflow properties can be found all over the country.
And when you buy the right investment property first up, it then puts you in a strong position to build a portfolio.
How Investors Dream can help
The big downside to borderless investing is the amount of research and time involved. You’ve got to crunch the numbers on multiple real estate markets before scouring your chosen neighborhood for the right property. Investors Dream can help.