Aussies keep property for more than decade

Nearly one-in-two Australian investors intend to hold on to their property for more than a decade, according to Mortgage Choice.

The firm’s annual investor survey revealed 45.6 per cent of Australian investors intended to keep their property for 10 years or longer.

Mortgage Choice chief executive, John Flavell, said investing in property meant investors should be prepared to wait a long time before they witnessed significant amounts of growth in the value of their investment.

Related News:

“In fact, most of the time when it comes to property investment, the longer you hold onto the dwelling, the more money you stand to make,” he said.

“There are lots of costs involved in buying and selling a property, such as stamp duty, agent fees, and pest and building inspections, and you are likely to reduce the impact of these costs on your hip pocket with time.” 

CoreLogic’s ‘Pain & Gain’ report found that in the March 2017 quarter, houses that resold at a profit had usually been owned for 9.1 years, while apartments that were resold at a profit had been held for 7.6 years.

“On the other hand, houses that resold for a loss had typically been owned for 6.3 years, while apartments that resold for a loss had typically been owned for 6.9 years,” Flavell said, adding that each city and region would differ.

Investors looking to invest in property should do so with a 10-year outlook and seek areas that would be poised for growth. New infrastructure projects were a good indicator of areas that would see a rise in demand for housing, Flavell said.




Related Content

OpenMarkets Australia pays infringement penalty

Online stockbroker OpenMarkets Australia breached market integrity rules in relation to both the ASX Market and Chi-X Australia Market throughout 2015...more

The folly of removing ASIC from the public service

The Public Service Act sets a high bar for the conduct of Government agencies and those who work within them and it would be folly to remove the Austr...more

Balance sheet can identify planner quality

The effectiveness, level and quality of a financial planner’s client services can be measured and quantified in the balance sheet and accounts of a ...more

Author

Comments

Add new comment