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]
The chief executive officer of Aussie Home Loans, James Symond, h...
MyState Bank has broken ties with Standard and Poor’s followin...
Brokers settled 55.7 per cent of all residential mortgages in the...