Premium
Personal Residential Real Estate Investment in Australia: Investor Characteristics and Investment Parameters
Author(s) -
Brown Rayna M,
Schwann Gregory,
Scott Callum
Publication year - 2008
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/j.1540-6229.2008.00210.x
Subject(s) - renting , real estate , investment (military) , economics , real estate investment trust , capitalization rate , sample (material) , residential real estate , business , finance , residential property , labour economics , demographic economics , economic geography , engineering , civil engineering , chemistry , chromatography , politics , political science , law
To date our understanding of the factors affecting the housing supply stem from the private provision of new units through real estate development. This article investigates a different aspect of housing supply, the private provision of rental housing through investment in existing properties. Using logistic regression and a series of micro data sets of Australian households, we examine the investment decision of residential rental property investors over the period 1990–2004. The sample period incorporates a full real estate cycle. Our results indicate that wealth‐related factors are the dominant factors driving these investments. Life‐cycle factors such as marriage and children play a less important role. Most of the determinants of income property investment do not vary with the property cycle. Marriage is an exception. It became more important as house prices rose.