Investors suffer greater losses than owner-occupiers

Investors are more likely to resell their properties at a loss than owner-occupiers, according to a new report by CoreLogic RP Data.

The property data group’s Pain and Gain Report for the September 2015 quarter showed that 7.3 per cent of owner-occupier sales were at a gross loss during the period, compared to 10.3 per cent of investors.

CoreLogic RP Data research analyst Cameron Kusher said a potential reason for the heightened loss for investors comes down to the fact they may be more willing and able to move on from poor-performing assets, as well as being able to utilise negative gearing to benefit from such a loss.

The report also found that 91.6 per cent of properties resold for a profit over the quarter, with 31.4 per cent of homes selling for more than double their purchase price.

The total profit value was $17.3 billion for the period, with an average gross gain of $265,605 per sale.

Only 8.4 per cent of homes resold recorded a gross loss compared with their original purchase price – down slightly from 9.2 per cent for the June quarter.

The total value of dwellings which resold at a loss over the quarter was $376.2 million, with the average loss per property at $63,221.

[Related: Owner-occupied lending to cool in 2016]

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