When and Why Do Landlords Retain Property Investments?

This paper examines factors influencing Australian landlords’ decisions to retain their rental investments. A variety of statistical techniques are applied to uncover the factors precipitating the exit of landlords from rental housing markets. It is found that middle-aged investors are more attached...

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Main Authors: Wood, G., Ong, Rachel
Format: Journal Article
Published: Sage Publications Ltd. 2013
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/41720
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author Wood, G.
Ong, Rachel
author_facet Wood, G.
Ong, Rachel
author_sort Wood, G.
building Curtin Institutional Repository
collection Online Access
description This paper examines factors influencing Australian landlords’ decisions to retain their rental investments. A variety of statistical techniques are applied to uncover the factors precipitating the exit of landlords from rental housing markets. It is found that middle-aged investors are more attached to rental investments than younger investors. However, once retired, there is a sharp increase in the likelihood of exit from rental investments. The estimates also confirm the importance of financial variables. Leveraged loss-making investors with higher gross rental yields are more inclined to terminate leases. It is concluded that fiscal and monetary policy settings play an important role in shaping rental housing investment decisions, since interest rate and tax parameters are important in determining investors’ negative gearing status. These will in turn drive changes in housing supply and affordability in rental markets.
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publishDate 2013
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spelling curtin-20.500.11937-417202017-09-13T14:19:01Z When and Why Do Landlords Retain Property Investments? Wood, G. Ong, Rachel Investment property Landlord's decision This paper examines factors influencing Australian landlords’ decisions to retain their rental investments. A variety of statistical techniques are applied to uncover the factors precipitating the exit of landlords from rental housing markets. It is found that middle-aged investors are more attached to rental investments than younger investors. However, once retired, there is a sharp increase in the likelihood of exit from rental investments. The estimates also confirm the importance of financial variables. Leveraged loss-making investors with higher gross rental yields are more inclined to terminate leases. It is concluded that fiscal and monetary policy settings play an important role in shaping rental housing investment decisions, since interest rate and tax parameters are important in determining investors’ negative gearing status. These will in turn drive changes in housing supply and affordability in rental markets. 2013 Journal Article http://hdl.handle.net/20.500.11937/41720 10.1177/0042098013484544 Sage Publications Ltd. fulltext
spellingShingle Investment property
Landlord's decision
Wood, G.
Ong, Rachel
When and Why Do Landlords Retain Property Investments?
title When and Why Do Landlords Retain Property Investments?
title_full When and Why Do Landlords Retain Property Investments?
title_fullStr When and Why Do Landlords Retain Property Investments?
title_full_unstemmed When and Why Do Landlords Retain Property Investments?
title_short When and Why Do Landlords Retain Property Investments?
title_sort when and why do landlords retain property investments?
topic Investment property
Landlord's decision
url http://hdl.handle.net/20.500.11937/41720