Property investors in it for the long haul
Nearly half of investors are choosing to buy and hold their property for more than a decade.
Research from Mortgage Choice has revealed 45.6% of Australian property investors plan to keep their property for 10 years or longer. Mortgage Choice chief executive John Flavell said the research demonstrated many property investors understood the wisdom behind a long-term strategy.
“Property investing is not a ‘get rich quick’ scheme,” Flavell said. “Potential property investors shouldn’t invest in this particular asset class if they believe that they are going to make a lot of money overnight.”
Flavell cautioned potential investors that it could take some time to see significant value growth.
“In fact, most of the time when it comes to property investment, the longer you hold onto a dwelling the more money you stand to make,” he said.
Flavell’s comments were supported by CoreLogic’s Pain & Gain report, which showed that houses resold at a profit were typically held for 9.1 years, while apartments resold at a profit were held for 7.6 years. By contrast, houses sold at a loss had typically been held for 6.3 years, while apartments resold at a loss had been held for 6.9 years.
“If you are intending to buy an investment property, make sure you approach it with a long-term vision. Do plenty of research and take note of any areas that are poised for growth in the coming 10 years. New infrastructure projects can be a good indication that a suburb will see a rise in demand for housing,” he said.
- Super low 1.59% home loan rate – but what’s the catch?
- I’m a home loans expert, so why am I getting ripped off?
- Why “20-minute cities” are set for a property boom
- RBA Survey: Experts predict $76,000 increase in property in next 12 months
- 82% of experts say vaccine passports are an economic necessity