The majority of Victorian landlords are in the higher disposable income brackets. In 2011-12, almost 68 per cent of private landlords had a disposable income of $728 or more a week. Seventeen per cent of private landlords had a disposable income of between $431 to S728 a week, and 15 per cent were in the two lowest disposable income brackets, with a disposable income of $431 or less a week. In contrast, less than 38 per cent of people who were not landlords had a disposable income of $728 or more a week in 2011-12. Just over 42 per cent of people who were not landlords were in the two lowest disposable income brackets, with a disposable income of $431 or less a week. Figure 24: Distribution of private landlords and non-landlords by disposable weekly income quintiles, 2011-12 Disposable weekly income Receiving income from rental property (private landlords) Not receiving income from rental property (non- landlords) All Victorians Less than $260 10.9% 20.8% 20.0% $260 - $431 4.3% 21.3% 20.0% $432 - $727 16.9% 20.3% 20.0% $728 - $1,068 21.9% 19.8% 20.0% Over $1,068 46.0% 17.8% 20.0% Source: ABS, Customised Survey of Income and Housing report, 2015 28 ABS, Customised Survey of Income and Housing report, 2015. 29 ‘The Australian private rental sector: changes and challenges’, Kath Hulse, Terry Burke, Liss Ralston and Wendy Stone, for the Australian Housing and Urban Research Institute, Swinburne Research Centre, July 2012, AHURI Positioning Paper No. 149, page 29. 30 Ibid. Page 36 of 41
Laying the Groundwork - Consultation Paper Residential Tenancies Act Review – Fairer Safer Housing 6.3 How many rental properties do landlords own? In 2011-12, almost 12 per cent of Victorian households owned one or more residential rental properties. Of these households, the majority (73 per cent) owned only one rental property. Figure 25: Proportion of households owning residential rental properties (excluding current residence), 2011-12 Source: ABS, Customised Survey of Income and Housing report, 2015 The 2012 AHURI study found a link between the income and age of landlords. In 2009-10, the proportion of Australian landlords owning at least one rental property increased with household income and also increased with age up to 64 years. 31 However, while there has been a growth in investment in the private rental sector, this has been from an increase in the number of small-scale household investors buying single properties rather than existing investors increasing their property portfolios. 32 New investment focussed on: • established properties rather than new stock, 33 and • detached properties, particularly in outer suburban areas. 34 Investment in established properties is considered to provide the opportunity for low risk capital gains. The purchase of detached properties on the urban fringe is seen to reflect small investors being more interested in rates of return, which are higher in the outer suburbs of Melbourne, the lower management costs of newer properties, and having a rental property close to where they live.
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