Should history be a useful indicator of the future, the value of the property you live in today will be worth at least double that in ten years’ time. The quintessential Freo limestone semi will go for around $1.5 million, an Arundel Court flat will fetch around over $500,000 and the ‘80’s brick four bedder in Samson will achieve over $1,000,000. The current flat market conditions makes it more difficult to comprehend how these future values might be realised yet, on average, when looking historically, Perth’s property prices rise by 10 per cent each year and values double every seven years.
Sure, you need to choose when to buy and, of course, when to sell. A purchase in June 2007 meant paying the median Fremantle house price of $725,000. Seven years later the median was $823,500 and well short of the anticipated growth rate if following the “double every seven years” theory. The problem is that growth is not linear. If you had bought a year earlier in 2006, the median price was substantially less at $530,000. Ten years on, Fremantle’s regional median house price is $783,750 close to 50 per cent higher.
Putting these specific numbers aside, the point is that buying and selling property historically shows some pretty impressive capital gains across relatively short periods of time. Simple math shows capital returns looking even better when holding property for fourteen, twenty-one and twenty-eight year periods.
Putting these specific numbers aside, the point is that buying and selling property historically shows some pretty impressive capital gains across relatively short periods of time. Simple math shows capital returns looking even better when holding property for fourteen, twenty-one and twenty-eight year periods.
With some very competitive fixed term interest rates available from money lenders at the moment and with plenty of choice out there, making the decision to buy property now with a view to holding it for at least seven years is probably a good one.
Make sure you contact your local REIWA agent when it is time to sell in 2026, for if history repeats itself you should sell for about double what you pay today.
In this rapidly rising local market, buying vacant land and building might be a smarter bet than buying an established home. Vacant residential land values across Perth increased about 34% last year, pushing the median lot price to $329,000. The old real estate saying of “land appreciates, houses depreciate” is … Read more
When the time comes to sell or lease your property, property owners often look to the internet to help shortlist agents that might meet their needs. Well established methods of choosing your agent such as re-employing an agent previously used, recommendations from friends and relatives or visiting Home Opens to … Read more