The short answer to this questions is: as many as you want and you can get your hands on. There are some factors that will limit the amount of investment properties you can feasibly own but all of these have solutions.
Here's how many properties investors hold in Australia in the 2020-21 financial year: 71.48% of investors hold 1 investment property. 18.86% of investors hold 2 investment properties. 5.81% of investors own 3 investment properties.
That 7% also have three or more interests in investment properties across the country, with 1% of investors – or just 19,895 people – currently holding six or more investment interests.
You can own as many as you want. There is no limit to number or location. As long as you have the money, or can convince the bank to give you the money, you can buy property to your hearts content.
For tax reasons, the ATO does not permit you to have two primary residences; nevertheless, if you own numerous residences, you may still be qualified for tax deductions.
Former home used for income. If you use your former home to produce income (for example, you rent it out or make it available for rent), you can choose to treat it as your main residence for up to 6 years after you stop living in it. This is sometimes called the '6-year rule'.
How long do you have to live in a house to avoid capital gains tax in Australia? To avoid CGT, you'll need to live in a property for twelve months for it to be counted as your main residence before you can move out and use it as an investment property.
1.6% of Australians own 2 investment properties.
71.5% of investors hold 1 investment property. 18% of investors hold 2 investment properties. 9.7% of investors hold 3, 4 or 5 investment properties. 0.8% (or 19,895) investors hold 6 or more investment properties.
The short answer to this questions is: as many as you want and you can get your hands on. There are some factors that will limit the amount of investment properties you can feasibly own but all of these have solutions. It may require you to get creative and think outside of the box but anything is possible.
Australia's largest private landowners, pastoralists Donny and Colleen Costello, have expanded their cattle station empire to more than 9.2 million hectares, after acquiring Mount Doreen Station in the Northern Territory for $70 million.
1st. Oldfield and Costello families: 7.2 million hectares
In early 2022, their joint venture Crown Point Pastoral Company purchased 3.26 million hectares from Gina Rinehart's portfolio. This purchase bumped up their landholding to 7.2 million hectares, making them Australia's official largest landowners.
Starwood Capital Group, which was the largest owner in 2022 with 115,000 units, is a private investment firm headquartered in Miami, Florida.
In conclusion, you will need to own your own home plus at least three debt-free rental properties to have a modest retirement. Beyond that point, each additional property will add to your comfort and when you have six or more rental properties you can start breathing easily.
Average real estate return on investment
The average rental yield in Australia is around 8%, with 1% accounting for ongoing costs like dues, strata and insurance fees.
18% of investors and 1.42% of the Australian population owned two properties. 5.5% of investors or 0.43% of Australians owned three properties. 2% of investors or 0.16% of Australians owned four investment properties. 0.8% of investors or 0.065% of Australians owned 5 investment properties.
Escalating mortgage repayments, low confidence in the long term future of property and prohibitive legislation are the likely causes.
Half of All Landlords Manage Their Own Properties
The remaining 11% consists of landlords that manage, but don't own their properties. On average, landlords have three properties to their name.
In 2019–20: Two thirds (66%) of Australian households owned their own home with or without a mortgage. This was consistent with ownership in 2017–18 (66%). Almost one third (31%) of Australian households rented their home in 2019–20, a decrease from 32% in 2017–18.
Key statistics
Average net worth for all Australian households in 2019–20 was $1.04 million. Total average liabilities for households saw a statistically significant increase from $189,500 in 2017–18 to $203,800 in 2019–20.
General Sizing Variations
The average house size m2 is the largest in the ACT at 256.3 m2 (2019-2020), followed closely by Victoria at 250.3 m2. NSW is third largest (235 m2) and Western Australia next (232.5 m2). Tasmania has the smallest houses on average at 179 m2 for new builds.
Around two-thirds (66%) of Australian households owned their home in 2019-20 – either with or without a mortgage. This figures remains on par with 2017-18, however is down on the 68% recorded in 2015-16.
As a general rule, you can avoid capital gains tax when selling your investment property if that property is your primary place of residence (PPOR). This rule exists because you usually don't generate an income from living in your own home.
An exception to this is the 6 month rule which states that where a taxpayer acquires a new dwelling that is to become their main residence, and the taxpayer still owns their existing main residence, both dwellings can be treated as the taxpayer's main residence for a period of up to 6 months.