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.
“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.
AUTHOR
Malavika Santhebennur
Recommended for you
Wrapping up the reporting season for the 2024–25 financial year, Money Management rounds up the results of Australia’s listed platforms.
Investment platform Praemium has announced an integration with fund services firm Clearstream’s platform into Praemium Spectrum, expanding advisers’ access to global funds and greater operational efficiency.
Financial services firm Akambo has rebranded itself as an investment management and asset consulting business after almost two decades of operation, targeting $20 billion in assets under management.
Big four bank Westpac is seeking to expand the BT Panorama investment offering through strategic alliances as well as launching a low-cost offering.
