Australian property real-estate history cycle is strong for profits
Posted
in Updates
@ Jan 17th 2014 5:47pm
- By Garry Larden
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Over the third quarter of 2013 RP Data recorded 69,949 residential property re-sales nationally with 88.9% of all September quarter re-sales recorded a gross profit relative to their original purchase price, and the gross profit from these re-sales equated to $12.6 billion
There were approximately 30.5% of all re-sales at least doubling their money compared with their original purchase price which is great news, and the average gross profit per profit making transaction was $202,546.
For those re-sales that incurred a gross loss over the September quarter, their average length of ownership was just 5.2 years.
Properties that recorded a gross profit were held for an average of 9.7 years, while those homes that recorded a gross profit of more than 100% were owned for an average of 15.8 years.
Obviously the GFC has put the average 7 to 10 year property real-estate cycle out of tilt as the GFC was something we haven’t been through before but the cycle will start to fall back in line as history will prevail I am sure.
