Aussie Home Loans blog

Get the most out of your home loan.

  • Home
  • Buying Your Property
  • Money Smarts
  • Maintaining Your Property
  • Ask John Symond
  • Life and Style
  • Customer Stories

Category Results

Tag Results

Author Diane Leonard Results

Meet with a Broker

Who’s made the most from property?

February 26, 2014 By Diane Leonard Leave a Comment

Signs-Youre-Ready-to-Invest

Follow us as we take a rear mirror look at which properties – and locations, have delivered the best gains.

Strong capital gains are often regarded as the ‘holy grail’ for property investors. Outstanding returns have been achieved by landlords even in periods when the overall market has experienced slow conditions.

But when it comes to determining who has made the most from bricks and mortar, location and the type of property can play a big role.

Gains of almost 20% annually

In one study by RP Data, the largest property price gains over the past five years were recorded across regional markets – particularly those associated with the mining sector.

The Pilbara region of Western Australia for instance notched up capital growth of 19.8% annually over the five years to May 2013.

However with the resource sector moving out of a once-in-a-generation boom, many mining towns are seeing a slowdown in demand. The days of supersized gains in these areas could be behind us.

1-year gains – Sydney tops the league tables

When it comes to healthy returns over the past 12 months, it’s hard to go past the Sydney residential market.

Again referring to RP Data research, in the 2013 calendar year Sydney house owners enjoyed price gains of 15.2%. That’s well above the average across Australia’s eight capital cities of 9.8%.

Perth houses weren’t far behind with an average value increase of 10.2%.

One-year returns always make for interesting reading however most of us hold onto properties for far longer.

So let’s look at the 5- and 10-year gains around the country.

5-year winners

This is where the picture becomes far more diverse, indicating how metropolitan markets around the nation can perform very differently the longer term.

Over the last five years for instance, RP Data figures show the frontrunner for returns were Sydney houses (growth of 6.8% per annum). Broadly speaking, units haven’t fared as well. That said, the 5-year returns for Melbourne apartments are on par with the gains for houses – both achieving returns of 6.4% pa.

…and over the very long term…

If we stretch the investment timeframe to 10 years, Darwin and Perth stand out as the most rewarding locations.

Over the last 10 years Darwin takes the lead. Units in the top end capital earned juicy capital growth averaging 9.2% annually compared to 9.0% for houses. Second placegetter – Perth houses, racked up annual gains of 8.0% (units 7.0%).

The past is no guide for the future

The nub of it all is that different residential markets move in cycles, and in a nation as diverse as Australia it’s no surprise that property values nationwide don’t move in sync.

With this in mind, when it comes to making money on your next property, the rule of thumb is to buy in an area you can afford that offers prospects for ongoing growth.

Importantly, remember that yesterday’s returns are not a guide for future capital growth. Markets change quickly, and when it comes to investing, yesterday’s frontrunner can easily become tomorrow’s also-ran.

Check out Aussie’s free Property Investing Guide for more ideas on getting a great return on your next property.

Winners are grinners – are you one of them? If you have entered the market as an investor share your best investment tips with us via the comments below!

If you enjoyed this article, please share it on Facebook, Twitter, LinkedIn and Google+ using the share buttons below.

Related posts:

This Week's PicksVirtually furnished homes, landlord mistakes and borrowing calculators. This Week’s Picks! Online HouseOnline Property Games – can they teach you real life lessons? From moving out to moving in how to grow wealth5 resolutions to grow wealth

February 26, 2014 Diane LeonardLeave a Comment 

Filed Under: Money Smarts Tagged With: landlords-and-property-management, making-an-offer

Meet with a Broker
Property Guides
Tools and Calculators
Repayment Calculator

About Diane Leonard

Diane is the digital marketing manager at Aussie Home Loans. She is a self-professed geek and lover of all things digital. She continues to search high and low for the healthier version of herself, and when she can fit it in, you'll find her preoccupied with her cat - Jez, buzzing around Sydney on her scooter or attempting to learn a new tune on her ukulele.

Search the Aussie Blog

Borrowing Calculator
Repayment Calculator
Property Guides
Meet with a Broker

Connect with us

Popular Posts

  • Buying Your First Home With Little or No Deposit Buying Your First Home With Little or No Deposit With the property prices where they are today there has...
  • If you’re thinking that it could be a good time to buy your first home but aren’t sure about how you can get your foot onto the property ladder or if you have saved enough

    More...
  • 7 easy ways to add ‘wow’ to your outdoor area (and value to your home) 7 easy ways to add ‘wow’ to your outdoor area (and value to your home) Outdoor space is highly prized by home buyers, but ther...
  • Outdoor space is highly prized by home buyers, but there’s no need to spend a fortune on professional landscaping. Our seven simple projects can add value to your lifestyle – and your home. Don’t underestimate

    More...
  • The ultimate wedding cost checklist The ultimate wedding cost checklist It’s no secret that planning your wedding can be expens...
  • It’s no secret that planning your wedding can be expensive and the last thing you need for your big day is a financial headache.  With so many costs to cover - from the venue, to the

    More...
  • Five reasons you may transfer home ownership Five reasons you may transfer home ownership While selling on the open market is an obvious one, the...
  • While selling on the open market is an obvious one, there are several other reasons why you may be transferring home ownership. Here are five of these reasons, plus guidance on your legal and financial

    More...
  • Construction loans and how they work Construction loans and how they work With residential property prices rising across our capi...
  • With residential property prices rising across our capital cities, it’s no surprise that we’re also seeing a rise in construction loans as savvy home owners and buyers look for a cheaper alternative to buying and

    More...
The fine print Moderation Policy

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. © 2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.