If you’ve ever considered investing in real estate, a recent study may be enough to convince you. CoreLogic’s latest Pain & Gain report found the overwhelming majority of Australian homes are selling for profit. In the December quarter, 91.1 percent of homes sold locally fetched more than their original purchase prices.
That’s an improvement on the already strong results of the previous quarter, when 90.7 percent of local real estate sales turned a profit.
The December quarter profits are nothing to sneeze at either. During this period, Australian homes sold generated $18.8 billion in profits. The median profit was an impressive $172,000. While there were some losses, these were comparably minor with a median value of $33,000.
The report also found the longer an owner had the property, the greater its chance of selling for profit.
“These latest results highlight that ownership of property, whether for investment or owner occupier purposes, should be seen as a long-term investment,” CoreLogic analyst Cameron Kusher wrote in a press release.
CoreLogic’s research also found homes in capital cities also tended to perform better than those in regional areas. Adelaide and Perth were the only cities where the proportion of homes reselling at a loss didn’t fall. The Australian Capital Territory had the lowest level of loss-making sells, with just 1.1 percent of homes failing to make more than their last purchase price. Sydney wasn’t too far behind, with just 1.9 percent of homes posting a loss, followed by Melbourne at 4.4 percent and Brisbane at 7.9 percent.
If you’re encouraged by the strong profit-making potential of real estate in Australia, speak to Chase Edwards on 1300 854 833. We can offer an honest assessment of your finances and help you gather what you need for a deposit, as well as guiding you through the process of purchasing your first investment property. Visit our testimonials page to learn how we’ve helped other Australians just like you develop their property portfolios.