CoreLogic has revealed where properties are selling for more or less than their previous purchase price.
When buying property, having your home appreciate in value is something that most buyers would hope for, myself included! My own investment property has appreciated in value, and I recently took the equity to help me buy my new home. Whether owner occupier or investor, capital gains is a good thing!
I was interested to see in the latest data from CoreLogic, a global property information, analytics and data-enabled services provider, that between July and September 2014, 90.7% of property resales recorded a profit, and an incredible 30.1% of these sold for more than DOUBLE their original purchase price. Now that’s a nice return on investment.
Unsurprisingly, the data also showed the longer you’ve held a property before selling, the higher the chance of profit. Holding onto a property for a longer period of time is an important part of a capital growth investment strategy.
Out of the 9.3% of properties that sold for a loss, their average length of ownership was 5.7 years, compared to an average of 9.9 years for properties that made a profit. The homes that resold for more than double the previous purchase price had been owned 16.8 years on average.
Here are Australia’s top ten regions based on the percentage of properties that sold at a loss.
% of properties that resold at a loss – least likely
- Illawarra (NSW) (2.2%)
- Sydney (NSW) (2.6%)
- Newcastle and Lake Macquarie(NSW) (3.1%)
- Toowoomba (Qld) (3.2%)
- Bendigo (Vic) (4.6%)
- Geelong (Vic) (5.6%)
- Central West (NSW) (5.9%)
- Melbourne (Vic) (6.6%)
- Ballarat (Vic) (7.4%)
- Southern Highlands and Shoalhaven (NSW) (8.0%)
% of properties that resold at a loss – most likely
- Mackay (Qld) (37.8%)
- Townsville (Qld) (28.4%)
- Fitzroy (Qld) (27.0%)
- Wide Bay (Qld) (25.9%)
- Outback (WA) (25.7%)
- Cairns (Qld) (25.1%)
- West and North West (Tas)(24.4%)
- Gold Coast (Qld) (22.5%)
- Wheat Belt (WA) (21.5%)
- Bunbury (WA) (20.2%)
Has your property enjoyed capital growth? What do you plan to do with the equity in your home?
If you found this article useful please share it using the buttons below.