Patience pays for property investors
Almost a third of the owners who sold property in the December quarter of 2014 doubled their money, according to recently-released figures.
The figures reinforced the truism that property should be a long term investment – the owners who sold for twice what they paid (or more) had held for an average of almost 17 years.
Owners who sold for a profit of any amount had held for an average of over 10 years, and the average gross profit per sale was a none-too-shabby $250,000.
However, not all investors are cracking out the bubbly.
On average, properties in regional areas around Australia were more likely to resell at a loss than in capital cities (14.8 per cent losing money in the country vs 5.7 per cent in capitals). Resales which lost money had been held an average of just under six years.
The worst performer was one-time investment resources “hot spot”, Mackay, where mining workers are leaving town, vacancy rates rising and more than a third of properties sold at a loss.
Rental data has also been released, showing rents in most capitals remaining at or near record levels – despite increased dwelling construction and investor activity in the market.
Over 2014, median asking rents for houses: rose in Sydney; were flat in Melbourne, Brisbane and Adelaide; and fell in Perth, Canberra and Darwin. For units, median asking rents rose – albeit by less than three per cent – in Sydney, Melbourne, Adelaide and Hobart but fell in Brisbane, Perth, Canberra and Darwin.