More than $536m in rental income was reported by Geelong individuals, according to the latest tax figures.
The average property investor in Geelong is almost as likely to use negative gearing as being in front as new tax figures show the staggering amount reported as rental income.
The new data from the Australian Taxation Office revealed the 3216 postcode, which takes in suburbs such as Belmont, Highton and Grovedale, was home to the highest density of investors in the region.
Torquay and Jan Juc (postcode 3218) and Newtown and Geelong (3220) were second and third spots, the latest tax figures revealed.
The three postcodes, covering 13 suburbs, makes up 36 per cent of investors declaring rental income in the region, with just over half reporting a rental loss.
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Investors in the top three postcodes reported more than $213m in gross rent, nearly 40 per cent of the region’s total rental income declared to the tax office.
The data revealed about 26,000 people in the region reported a rental income, taking in more than $536m.
But the figures showed 52 per cent of investors across the region earned a rental loss, although individual postcodes varied from as high as 66 per cent using negative gearing in the mortgage belt suburb of Armstrong Creek to 41 per cent in the retirement hot spot of Portarlington.
Hayeswinckle director Jessica Scholer said most landlords were mums and dads looking to secure their financial future for their retirement.
Hayeswinckle director Jessica Scholer said most landlords were mum and dad investors.
Ms Scholer said most landlords typically own one property and devised five to 10-year plans to eventually sell the home to increase their retirement income.
“We have a few but not many people who have multiple properties, but generally we get mums and dads with one property,” she said.
Increases to property taxes and compliance costs caused many local investors sell up in Victoria to buy elsewhere, she said.
“The rules and what you can buy in WA or in Queensland are a lot different to what you can get down here,” Ms Scholer said.
“Some are selling to buy and invest interstate. But we are seeing a lot of interstate investors who want to invest in our market.
“A lot of the landlords we get from interstate are using buyer’s agents or investment companies and they’re flagging Geelong as we’ve hit the bottom of the market and had an influx of stock come on with previous owners selling.”
Geelong investors’ rental incomes
| Postcode and suburbs | Gross rent reported | Investors negatively geared |
| 3217 – Armstrong Creek, Charlemont, Freshwater Creek, Mount Duneed | $26.8m | 66.5% |
| 3331 – Bannockburn | $9.6m | 61.4% |
| 3212 – Lara | $24.5m | 60.3% |
| 3218 – Geelong West, Herne Hill, Manifold Heights, Fyansford | $29.8m | 57.0% |
| 3216 – Belmont, Grovedale, Highton, Marshall, Wandana Heights, Waurn Ponds | $96.4m | 54.7% |
| 3219 – East Geelong, Breakwater, Newcomb, St Albans Park, Thomson, Whittington | $20.4m | 54.6% |
| 3224 – Leopold, Moolap | $17.8m | 53.7% |
| 3227 – Barwon Heads, Breamlea, Connewarre | $13.7m | 52.2% |
| 3214 – Corio, Norlane, North Shore | $8.8m | 51.5% |
| 3228 – Torquay, Jan Juc, Bellbrae, Bells Beach | $64m | 50.5% |
| 3241 – Bambra, Winchelsea, Wensleydale, Wurdiboluc | $4.1m | 50.5% |
| 3220 – Geelong, Newtown, South Geelong | $52.7m | 49.5% |
| 3226 – Ocean Grove | $33.5m | 49.3% |
| 3215 – Bell Park, Bell Post Hill, Drumcondra, North Geelong, Hamlyn Heights, Rippleside | $33.6m | 48.7% |
| 3222 – Clifton Springs, Curlewis, Drysdale, Wallington | $23.5m | 47.7% |
| 3225 – Point Lonsdale, Queenscliff | $12.6m | 44.5% |
| 3223 – Portarlington, Bellarine, Indented Head, St Leonards | $16.3m | 41.6% |
| 3230 – Anglesea | $8.5m | 38.7% |
| 3231 – Lorne | $4.9m | 36.4% |
| 3231 – Aireys Inlet, Big Hill, Eastern View, Fairhaven, Moggs Creek | $3.9m | 28.3% |
Source: Australian Taxation Office. Data shows rent, negative gearing reported by individuals living in postcodes in 2022-23 financial year.
Henning Property director John O’Brien said interstate investors were busy looking for local properties.
Henning Property director John O’Brien said most new investment buyers were from Sydney and Melbourne, but local investors were returning as interest rates fall.
“That’s on the back of some really good positivity around Geelong as an investment market,” Mr O’Brien said.
“I think local investors are a little late to the piece as they waited for a bit of validation around what they’re hearing.
“We were buying for Melbourne and Sydney investors six to nine months ago and typically in Grovedale, Bell Park and Bell Post Hill. We are hearing a lot of investors are buying in Corio and Norlane.”
Real Estate Institute of Australia president Leanne Pilkington said what stood out the most about the biggest postcodes for property investor numbers was that few of them would be considered overly affluent.
Real Estate Institute of Australia president Leanne Pilkington said most property investors weren’t overly affluent.
“I’m surprised by the areas, they are just not high-net worth areas,” Ms Pilkington said.
“The conversation is always around rich landlords and this data is demonstrating that the landlords really are just mum and dads.”
With high levels of negative gearing present in the top postcodes, anywhere from 54-76 per cent, she added that it was highly likely many of those investors simply couldn’t afford the homes without negative gearing.
Property Investment Professionals of Australia chair Lachlan Vidler said that with rents having risen substantially across most of the rest of the nation since 2022, there clearly were not enough mum and dad investors to support the nation’s tenants – meaning more needed to be done to encourage them.
He said it was becoming very clear governments would have to play a bigger role in providing social and affordable housing.