Revealed: Where the NT’s landlords live

The home at 29 Bayfield Rd, Malak, is for rent for $740 per week. Picture: realestate.com.au

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Territorian landlords received almost $500m in rent in just one year as new data reveals the postcodes home to the most investors.

Exclusive analysis of ATO figures released this year showed the majority of Territory-based landlords were living in the suburbs with many negatively gearing their investments.

The ATO data revealed about 3800 residents reported a rental income in the 0810 postcode, which covers half of the northern suburbs, Nightcliff, Millner, Rapid Creek and Coconut Grove.

This figures equated to more than 16 per cent of the 22,800 population.

The 0820 postcode, incorporating suburbs from Bayview to Larrakeyah and Fannie Bay, was home to about 2600 landlords, making up almost 19 per cent of the population.

In the 0870, otherwise known as most of Alice Springs, more 2000 residents (15%) received a rental income.

There were also about 1700 rental investors in the 0812 half of the northern suburbs (15%) and 1400 (12%) in both the 0830 and 0832 sections of Palmerston.

The investing residents of 0810 collected an annual gross rental amount of $93m, while that figure was $75m in 0820, $44m in 0870 and $37m in 0812.

Landlords in the Palmerston postcodes of 0830 and 0832 charged tenants a combined $57m annually.

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Michelle Carrington, Ray White Darwin senior property manager. Picture: Supplied

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Ray White Darwin senior property manager, Michelle Carrington said while Darwin had experienced an influx of interstate investors of late, many landlords were locals.

“We’re seeing the number of local buyers increase in the market,” she said.

“They’re investing in the northern suburbs and Palmerston areas due to the affordability and high rental returns.

“We also have quite a few long term local investors who have jumped back into the market of late.”

Ms Carrington said the majority of landlords Ray White Darwin interacted with, both local and interstate, tended to be mum and dad investors with one or two properties.

“I find they tend to be more involved with the processes than say a multi-investor,” he said.

“It’s all about financial decisions for the multi-investor, whereas the mum and dad in investors have that attachment to a property.

“While local investors, they can relate to the market and are more involve with their property.”

Real Estate Institute of Australia president Leanne Pilkington said what stood out the most about the biggest postcodes nationally for property investor numbers was that few of them would be considered 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.”

The unit at 320/19 Kitchener Drive, Darwin City, is available for lease at $900 per week. Picture: realestate.com.au

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With high levels of negative gearing present in the top postcodes, anywhere from 54-76 per cent, Ms Pilkington said it was highly likely many of those investors simply couldn’t afford the homes without negative gearing.

“I think it’s clear demonstration that these people probably wouldn’t be able to afford the properties without the negative gearing benefits,” she said.

In the Territory, the percentage of investors negatively geared per postcode ranged from 40 per cent in 0852 to 64 per cent in 0830.

Looking at the postcodes with the highest percentage of rental investors, 52 per cent of landlords were negatively geared in 0810, 49 per cent in 0820, 46 per cent in 0870, 63 per cent in 0832 and 65 per cent in 0830.

Real Estate Central director, Daniel Harris said it was a big misconception that those who invested in real estate were super rich.

“The vast majority are mum and day style investors just trying to get their family ahead,” he said.

Mr Harris said it would be no surprise if as good portion of the NT’s landlords owned property locally.

“It’s a pretty scary step to out of the state in which they live in to invest,” he said.

“It’s another reason we’re seeing buyer’s agencies become so much more common up here.

“And Darwin is by far the cheapest capital city in the country and we have the highest rental yields.”

The home at 2 Cooper St, Fannie Bay, is for lease for $1080 per week. Picture: realestate.com.au

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Property Investment Professionals of Australia chair Lachlan Vidler said the ATO data was surprising, not just because it showed a different view of who investors were — but because it also showed who was really using negative gearing.

“It’s not your white collar high income professionals, it’s very much that mum and dad belt,” he said.

“It’s not the doctors and all the rest who are negative gearing because of the high levels of their income.

“So it’s not only the mum and dads who are investing, they are also using negative gearing.”

Mr Vidler said his gut feeling was that in the areas where landlords were most prevalent, many would be investing in homes near them, with a high probability many had bought homes to live in 10 or so years ago and saw the lifestyle as appealing to potential tenants.

“I look at Kellyville and Rouse Hill and it really goes to show how when the government really does invest properly into infrastructure and transport, people not only move there and live there, then invest in it as well,” he said.

Mr Vidler said with rents having risen substantially across most of the nation since 2022, clearly there were not enough mum and dad investors to support the nation’s tenants — meaning more needed to be done to encourage them.

While mum and dad investors had done a lot of the heavy lifting, he said, it was becoming very clear governments would have to play a bigger role in providing social and affordable housing.

“They do have a huge obligation as they can physically provide some of that accommodation, but they can also create policies that make things better, or worse, and that may influence other groups to make their decisions,” Mr Vidler said.

“But when the government sentiment always seems to be to attack investors, or there’s a fear that the laws will be changed or altered every few years, it doesn’t set up a situation where the government is seen to be valuing the contributions of the private investors.”

NT POSTCODES WITH HIGHEST RENTAL INCOMES

(SOURCE: ATO)