Property 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 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 one reason for the heightened loss for investors might be that they are better placed to move on from poorly performing assets as well as being able to use negative gearing to benefit from such a loss.

The report also found that 91.6 per cent of properties resold for 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 from 9.2 per cent in 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: CoreLogic RP Data joins takeover bid for Onthehouse]

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