Investor Insights

Invest with confidence as our data and expertise reveal Australia’s most promising locations

What Level Investor Are You?

According to statistics, there is only a tiny minority of taxpayers in Australia who owns enough properties to fund their lifestyle and enjoy early retirement. Since all these calculations are purely based on the number of properties held and not based on value or equity, it is not a very reliable metric to measure success, and there can be exceptions. But keeping that in mind, let’s dive deep and look into the details

According to statistics, there is only a tiny minority of taxpayers in Australia who owns enough properties to fund their lifestyle and enjoy early retirement. Since all these calculations are purely based on the number of properties held and not based on value or equity, it is not a very reliable metric to measure success, and there can be exceptions. But keeping that in mind, let’s dive deep and look into the details

It is very clear from the table close to 90% of investors won’t go past 2 investment properties in their lifetime. Of course, there is a small minority in this group who voluntarily do not want to invest more into the property as they try to diversify into other asset classes, such as shares, crypto, or invest in overseas real estate markets. However, for most people, it is because they are either stuck due to initial poor choices or do not have the strategy to take it past the hurdles and make it to the top category.

0 %
of investors hold 1 investment property
0 %
of investors hold 1 investment property
0%
of investors hold 2 investment properties
0%
of investors hold 2 investment properties
0%
of investors hold 3, 4, or 5 investment properties
0%
of investors hold 3, 4, or 5 investment properties
0%
of investors hold 6 or more investment properties
0%
of investors hold 6 or more investment properties

The cost of inaction is far greater than the risk of taking an opportunity.

The cost of inaction is far greater than the risk of taking an opportunity.

From our analysis, we have found 4 Logical categories for investors based on their knowledge, strategy, and results, which we labelled from Level 1 to Level 4

From our analysis, we have found 4 Logical categories for investors based on their knowledge, strategy, and results, which we labelled from Level 1 to Level 4

Level 1

Investors who rely on property spruikers and fall victim to poor investment choices. Proximity to CBD, High Cashflow, Tax benefits, etc., is often considered before purchasing – very low capital growth prospects even in the long-term hold scenario. Eg: Off the plan apartment.

Level 2

Investors who rely only on land developers and other people’s opinions on long-term data factors affecting growth. Infrastructure developments such as train stations, schools, parks, recreational areas, population growth, etc are considered. They often buy new properties in areas where house and land packages are sold with ample amounts of land supply. Low maintenance, high depreciation benefits, better tenant quality, etc, are some of the considerations.

Level 3

Investors who rely on certain short-term and long-term data factors affecting growth. They know the importance of data and rely heavily on that. But due to a lack of experience and strategy, they do not establish the relative importance of each data factor and often give too much importance to negotiable data factors. They consider things such as vacancy rate, stock on the market, internal migration, percentage investors, etc. but do not know the correlation between them and ignore entirely the timing factor, the most critical thing that determines the immediate growth of a suburb.

Level 4

Investors who do comprehensive data research and interpret all the short-term and long-term data factors and the timing of suburbs before making an investment decision. They are either very savvy researchers or rely on the right experts to do the job. They understand the importance and relative weighting of each data factor and can do trend analysis on various factors to pick suburbs that are at the right time to invest. They invest in areas where the demand metrics are outstripping supply in the short and long term. Since such regions grow immediately, investors can leverage that growth, move forward quickly, and build a big enough portfolio that is both rare and rewarding!