Property Profits

The press might have you thinking that the Sydney and Melbourne markets are all doom and gloom at the moment. But when we look a bit deeper we see that they are far from that. In fact, if you have owned property there over the last five years, it has been outstanding.

According to Corelogic’s latest Pain and Gain report over the last three quarters, over 90% of people that resold property in Australia sold at a profit. Those figures are very positive. If you buy property and hang onto it for the longer term it is highly likely that you will make money. I would like to compare those figures to those of people selling shares over the last three quarters and see how many people made money through those sales. I will have a guess and say it would be less than 50%.

The total profits from dwelling resold in the June 2018 quarter was $15.683 billion. With $469 million in losses. Almost all of those losses coming from regional market resales.

What can we learn from this?

If you buy quality property within a reasonable distance to a larger capital city and you hold it for 5 years or more, then it is highly likely that you will make a profit. Keep away from regional markets that carry much more risk and have a higher probability of making a loss.

If you would like to learn more about this, please request a copy of my book, “The Complete Guide to Property Investing in Australia” we will send you out a copy for free. ($30 on Amazon)