Regulators have not yet started to roll out a vaccine for Australia’s other pandemic – the highly infectious love of Australian property which has caused the most dynamic and fastest growing market in over two decades.
The NIA team have done the numbers and in fact have proven that Australian’s love affair with residential property is far more contagious than Covid-19.
According to the ATO, a total of 2,097,392 Australians own 1 or more investment properties. This means that 8.7% of the Australian population can classify themselves as property investors.
Now if we compare that to the Covid-19 Pandemic, Australia as at July 2021 has recorded just over 30,000 cases which therefore represents approx. 0.00125% of the Australian population.
But what makes investing in Australian Residential Property so contagious?
One of the main reasons we love property is that it’s one of our main accumulators of wealth. The Australian property market has soared above its pre-Covid peaks, reaching uncharted territory creating more Australian millionaires than any other asset class.
Then there’s the fact that Australian’s just love property. You’ve heard it at the family barbecues or at the school pick up or in the office kitchen. We all have. In fact, I stumbled across a study in 2019 by HSBC bank which identified Australia as the seventh highest property obsessed nation in the world. We spend more time obsessed with property than we do at the gym or speaking to our parents.
The Australian property market has soared above its pre-Covid peaks, reaching uncharted territory as record-low interest rates fuel an increase in buyer demand that current volumes of homes for sale can’t satisfy.
My own love affair with property investing began when I bought my very first place in my early 20s, borrowing $86k at an unimaginable 17% mortgage rate.
I was so horrified about the interest rate, it kick-started an intrigue and passion for the property market that has lasted my whole life.
Now I help Australian’s grow their wealth and help them achieve the quality of life they want for their family.
By Matt Bower