After the trials of 2020/21, I expect ‘adaptable’ and ‘resilient’ to be emblazoned across the plinth of every monument to human endurance erected for years to come.

We’ve been served up challenges in all parts of life and, to our credit, have mostly found ways to alter our behaviours and make the best of each situation.

A great example of this is in the property investment space.

Property Investments

Describing the way investor sentiment and motivation have shifted in recent years has been difficult to do via hard data… until now that is.

The quantity surveying business I run with Marty Sadlier sees our team producing thousands of depreciation schedules every year for investors across the nation.

In the process of pulling together these reports, we collate an extraordinary amount of interesting data about our clients and the investment properties they own.

It spurred us to create the 1000 Assets series.

It’s a report that’s updated regularly to track trends in investment property markets.

Our 1000 Assets report for 2022 has just been released and it delivers a set of numbers like no other.

For this article, I’d like to talk about the study’s revelations around how investor attitudes are changing, and what they reveal about the market direction in the future.

What is the 1000 Assets report?

We’ve collated data captured during the preparation of our client’s depreciation schedules into 1000-property subsets from 2016 onwards.

From there, we’ve analysed the numbers to monitor changing investment trends.

The study includes outcomes for each individual subset, painting a picture of behaviour at certain points in time.

We’ve also tracked the trends between subsets to see how investor thinking and property decisions have evolved over the past six years.

The 2022 report: Changing investor behaviour

We’ve identified a range of outcomes in the most recent 1000-asset dataset which runs from July 2021 to March 2022.

Here are some of the revelations.

One-fifth of landlords live in their investment first

The numbers showed that 20.2 per cent of landlords lived in their assets before they were retained as investment properties.

The average lived-in period was four years and four months.

A percentage of these landlords are ‘accidental investors’.

They didn’t intend to own an investment property when they first bought a home but became one when they decided to keep the asset instead of selling it.

Rights And Responsibilities Of Landlords

What’s interesting is this latest percentage is lower than the previous year’s result which saw around 25 per cent of all investments lived in first.

My take is that this is a combination of improved education and accessibility to remote buying opportunities.

Put simply, people became more aware of the benefits of investing in real estate and were happy to keep their home and investment property dealings separate.

They were also more easily able to seek opportunities outside of their local area.

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