Rental returns are not as important to landlords as capital growth, according to research undertaken by LJ Hooker.  Capital growth was the main motivation for investing in property for 27 percent of landlords, while only 15 percent nominated rental income, according to the real estate group’s 2015 Investor/Tenant Survey.

"Securing a regular income stream via rental returns is not the primary reason investors seek out property," said LJ Hooker National Research Manager Mathew Tiller. "The findings indicate capital growth and rental returns in combination are overwhelmingly desired, but a weekly income stream on its own is not a discernible motivator."

Respondents aged 35-44 owned on average more than two properties, while landlords aged 55-64 owned on average three. "But once the landlord sample reached the age of 65, there was a sharp declined in property ownership as landlords divested some of their portfolio to fund retirement," said Tiller. "Property investment is most successful when a long-term vision that transcends property cycles is embraced."

According to the findings, 55% of respondents thought negative gearing was either ‘very important’ or ‘important’ in the investment strategies of 55 percent of respondents, with 31 percent saying they would sell some or all of their properties if negative gearing was abolished. 

"The negative gearing debate receives significant debate because of the perceived impost on the tax base," said Tiller. "But it’s evident to see how important it is for investors. It is also important for the economy, encouraging investors to inject money into the economy, driving jobs and supporting local communities." 

LJ Hooker Head of Property Management, Amy Sanderson, said owning an investment property was far more achievable than many thought, with 29 percent of respondents earning an annual household income of between $100,000 and $150,000.

Across Australia and New Zealand, LJ Hooker manages more than 150,000 residential properties for landlords.