Is the number of Real Estate Investors increasing?

I have only been actively investing for the last 3 or 4 years now, in this time it seems like more and more people are jumping on board to property investment.

It's got me wondering, is this actually occurring or its just a matter of these stories and advertisments being on my radar now?

There seems to be a large number of spruikers helping people build huge portfolios and with Sydneys recent success combined with the constant internet battering of success stories and thirty year olds leaving the rat race, is there actually more active investors then we have seen before?

I've had a google around and couldn't see any figures for percentages of houses investor owned, although it seems that looking on SQM, the national vacancy rate has been increasing steadily since 2010 to 2.5% and Brisbane, the common favourite among spruikers as the next to run has been increasing quite rapidly to 2.9%

 

It's a boom market, people are jumping on the band wagon.

 

Yes.

 

I'm not sure, if you were presently in Perth I think property investing would be on the nose. Just like in Brisbane in 2011-12.
Currently affordability is strong in many markets with incredibly low interest rates. More people can afford to purchase and develop rather than rent affecting vacancy rates.

In the early 2000s it felt like everyone was talking about property, capital gains were easy to find everywhere. Perspective is influenced by whether a market is currently booming.

The biggest change would have to be the free access to information via the Internet. I definitely think where people invest has changed, buying interstate rather than in the next suburb.

 

I think the volume of investors is directly proportionate to the stage of market cycle.

As both owner occupied percentage drops and vacancy percentage rises, returns drop and in turn so do investors.

 

True this... i'm sure i'd be much less inclined to buy interstate without getting the thoughts from the likes of you guys and gals...

 

Yes there are generally more investment properties now than in past years.

 

23% of the approx 9m households are investor owned. Back in 2010/2011 there was about 1.7m with an IP and now it's more than 1.9m.

Found this little factlet interesting

 

Used to be 30% PIs and 70% OO's. Latest is around 31% - 69% so definitely moving in a direction of more investors. Let's see what that latest (ahem) Census comes up with.

 

I think the general proportion would remain the same, upsetting the balance would affect yields and people would drop out. Hence once the magic proportion is setup, it should remain constant. I find that I know more people who are investing as my social circle changes.

 

Actually, if the proportion remains constant then the quanta increases by a factor defined by population growth.....

Over the medium to long term, it is probable that the "number of" investors increases unless there is either population stagnation/ decline or OO/investor ratio somehow increases significantly.

 

Property has been very much in favour, no surprises considering we have had some booming markets since 2013 and with record low interest rates no brainer why people jumping in.

I believe the Number of investors will decease once property markets start cooling, because the market sentiment will change and property will no longer be considered attractive, fear sets in and people nothing when this happens. It will just be a matter of time, the normal with regards to property cycles.

 

decease? really?

 

Yep, I agree... a short term swing is likely due to the property cycle.

 

No different to share markets, if it crashes, most get spooked and wont continue buying, especially if they are losing money, they will sit on the sidelines.

Same as property, the good times have been rolling in especially for those who invested in Syd and Melb, investors/buyers are flush with money therefore they want to repeat this and continue buying.

As soon as the market peaks suddenly property is no longer what it was, its falling in price, for example Perth is experiencing a downturn, markets are falling, there is more stock than buyers, property is not an attractive investment in this market.

 

Hi MTR... It might have been a spelling question... you might have inadvertently forgotten an 'r'

 

Maybe she's a Labor voter

 

will pigs fly?

 

Ps. MTR... that would be true. So many people would be seeing investors making a killing in Sydney and Melbourne so i'd guess others who may have ordinarily parked their money elsewhere such as shares may have jumped in too.
When things turn though, people will shift their money elsewhere and property may go flat or backwards, and if people with 1 or 2 low performing IPs end up selling, (finding it a bit of a struggle, low growth etc and are impatient), they will no be longer property investors. People with multiple properties will probably still be sitting pretty though and laughing their heads off with all the equity already generated.

 

I think your just noticing it, but say after 2000 or so, it did seem to me that every man and his dog were having a go. With media also concentrating on it and all the stories of how rich negative gearing users are (a myth for most) and the ease of all the data etc, I would say it has to get more in, but I wonder how many leave once they find that roses also have thorns.