I'm considering a Newcastle (NSW) property, which I know sold for $180,000 in December, 2002. In one of my many investing books, I recall reading that property increases in value about x% per annum – but I can't recall what "x" was.
Is there a generally-agreed estimate of what per-annum % a property increases in value over the long term?
Between 2003-2008.. Property in Sydney experienced BIG 0% growth
But after taking into inflation it will be BIG NEGATIVE GROWTH. Excluding holding cost.
The property investing textbooks will tell you property prices usually double every 7-10 years. However considering the property market at the moment, I agree with the negative growth previously stated.
probably negative growth
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Rather than following the apparrent trand of guessing blindly in the dark, much like the advice you just recieved, why not invest in some actual facts and figures.
Look at the very useful free sites, like realestate.com.au and domain.com.au, and look at suburb profiles and recently sold properties. DO NOT put any weight in the advertised prices, as they really dont mean that much.
See the link below for the information that I was able to fing with 3 mouse clicks, in under one minute. Actual numbers, not ridiculous blind guesses.
http://www.domain.com.au/public/suburbprofile.aspx?searchTerm=newcastle&mode=research
By the look of it, the only years the suburb of Newcastle has experienced negative, or stagnant growth, was 2005-6. Other than that, it looks like it has preformed reasonable strongly and depending on the price, it might be well worth looking at.
I hope this helps. And I dont mean just helps JustAllan, but maybe it will hepl all the other individuals who are quick to offer their mis-informed opinions.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
