There has been a marked increase in the age of property investors since the mid 2000s. Over the decade to 2014/15, the share of property investors who were aged 60 years and over almost doubled (Graph B5). This shift reflected both the increase in the share of the population aged over 60 and an increase in the extent of investment property ownership within this age group. Overall, around 20 per cent of taxpayers aged over 40 are property investors compared with less than 10 per cent of those under 40.
Graph B5
There has also been a significant increase in the share of geared investors aged over 60. While this seemingly could increase risks, there are some mitigating factors. Although this age group is more indebted, the average retirement age has increased over time, so older investors are more likely to be working, increasing their capacity to withstand shortfalls in rental income or higher interest rates.
