What kind of people really own and rent out their own properties in Australia? 

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As this new world of renting out your own property comes to prominence, those who are interested in embarking on this journey will wonder if they have what it takes.

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As with anything, you get out what you put in and certain kinds of individuals will flourish more than others. 

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Let’s debunk a few myths about Property Ownership in Australia

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But first a quick disclaimer. The data we have used in this next section is from a 2012 Australian Tax Office study. Yes, it’s a few years old now, but there has not been another study quite as comprehensive since. 

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So, in this instance we accept slightly older information for the benefit of detailed insights into Australian property owners.

The two most common myths about property ownership are:

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(i)  You have to be old 

(ii) You have to be rich

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Let’s look at the data to see if it supports this. This chart is incredibly helpful in dispelling the two myths.

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The segment on the left shows the percentage of people claiming rental income on their tax who are under age 50. The segment on the right shows the percentage of people over the age of 50.  

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Now, it’s worth pausing for a moment to consider what age is ‘old’, but we randomly picked over 50 and under 50, and you can see that 55% of people sit in the under 50 category. 

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We think it’s fair to say that the data shows you do not have to be ‘old’ to own property and receive rental income.

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In a previous post, we mentioned the high participation rate in property in Australia. This is reflected in the number and type of people who are then renting out their properties themselves. 

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Who are Property Owners and who Rents out their Own Property? 

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So the answer to the two main questions:

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(1) who are the property owners in this country? and;

(2) of those owners, who rents out their property themselves?

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The answer is... wait for it... drum roll...It’s everyone and anyone who is an owner!

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You don’t have to be rich, you don’t have to be old, or a specific gender or profession. Those who are renting out their properties themselves typically want one of three things:

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1. To save money and maximise their return on investment
2. To have more control over their most valuable asset
3. To remove the agent from in between them and their tenant

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If one of these sounds like you, let’s get started!

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Key takeaways about Property Ownership in Australia:

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• In Australia, property is owned by a wide variety of people – it’s not just for the rich or the old, everyone seems to be involved in property.

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• 55% of owners are under aged 50 and 70% earn less than $100k p.a. according to Taxation statistics 2012/13

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• Those who want to save money, have more control or remove agents from the process are likely to do it themselves.

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Download the Self-Management eBook.

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Want to understand how to rent out and self-manage your property? Start here - Your step-by-step guide to renting out your own property will include:

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• How to rent out your property - Six simple steps from advertising your property through to signing a lease and managing rental payments.

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• How to start your lease - State-by-state guide for setting up you lease, collecting bond, conducting a condition report & more.

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• Inspection checklist - Everything you need to do to organise and manage inspections.

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• What to do if a tenant doesn’t pay? - What to do next and which state-based laws apply.

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• How to advertise your property - What to include in your property ad to make it stand out.

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• How to select a tenant - What questions to ask and background checks to make.

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• How to collect rent - Payment schedules, rental ledgers, receipts & more.

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