In my time as a mortgage broker in Rockingham, I have done all I can to learn about both finance and real estate. It helps me perform to the utmost of my ability for you. One adage that has been uttered by professional and amateur alike is that real estate prices double every ten years. I felt it might be helpful to examine this and ask if it is true.
We work with a lot of small real estate investors who feel like real estate is the most reliable investment vehicle they are ever going to find. Over the long term, real estate tends to perform very well without the volatility one would see in share markets. But can you double your investment every ten years with real estate?
According to a recent CoreLogic RP Data report, this statement is close to being true. From 1996-2006 across the combined capital cities, home values rose 152%. However, in the next ten years, from 2006-2016, they “only” rose 72%.
However, these are average prices spread across a variety of markets. Those who select the right properties in the right suburbs should be able to count on their prices doubling every ten years. According to John McGrath, CEO of McGrath Real Estate Agents and the Real Estate “Expert” for Switzer Daily, there are four strategies you can employ to give yourself a good chance of “doubling your money” on an investment property.
Select only high quality properties in desirable places with a lot of infrastructure and amenities.
Buy homes with features that fuel buyer demand, such as alfresco living areas, open floor plans and modern kitchens.
If possible, add value to your investment property by expanding or renovating it.
Plan on holding any property at least ten years.
Call a Mortgage Broker at Smartline Rockingham
Our mortgage brokers have helped numerous small investors obtain capital for properties in Rockingham, Baldivis, Kwinana and other suburbs in the area. Our area usually provides exceptional capital growth. To learn more, call us today: (08) 9527 1800.