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Property remains the biggest as...

Property remains the biggest asset class in Australia

Although property price growth has been seeing a bit of a decline this year, figures actually show that this is still the most valuable industry in Australia.

In fact, it's worth about $6.5 trillion, which is an improvement on the $6 trillion recorded in August 2015, according to statistics from CoreLogic.

The analyst firm found that Darwin actually has the highest proportion of investment properties in the country, which is no mean feat in this highly competitive market.

In fact, CoreLogic has reported that nearly 43 per cent of the houses and other private residences in Darwin are owned by investors.

Unsurprisingly, the Gold Coast follows close behind with 32.8 per cent and Melbourne, Sydney and Brisbane come in at 32.2 per cent, 28.9 per cent and 28.6 per cent respectively.

What seems to be happening, particularly in these larger cities, is that agencies are buying up property not only to sell on, but also to knock down and redevelop for sale and holiday rental purposes.

This happens most often on the Gold Coast, which is a popular holiday destination for Australians and others from across the globe.

Tim Lawless, head of research at CoreLogic, said that although Australians are keen property investors, the vast majority of buyers only have one property that they use for investment purposes.

Often, they aren't high-value properties either, as the average dwelling recorded by the firm is worth between $300,000 (£152,553) and $500,000 (£254,351).

Mr Lawless also commented that investors have claimed billions in losses on investment properties. In the 2013/2014 financial year this amounted to $3.719 billion, which he said was actually lower than the previous few years.

He felt that this was in part due to low interest costs, because "the ability to claim a rental loss reduces because the interest deduction is overwhelmingly the single largest deduction available".

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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