We all know the saying that property is a long-term investment. But here's a thought: many homeowners have seen their property’s value increase several times over within the standard 30-year mortgage period.
Ask any homeowner who has held onto their property for a while what they originally paid, and chances are the number will seem shockingly low compared to today’s prices.
Many Australians look back on their property purchase and marvel at how affordable it was in comparison to current values, often feeling fortunate to have bought when they did.
This pattern isn’t something new.
Property’s impressive track record of growth
Over the past century, residential property values in Australia have risen at an average rate of 10.9% annually.
While there might be occasional short-term dips or periods of stability, the overall trend is one of strong growth.
In terms of dollars, the growth has been astonishing.
Take Sydney for example. Back in mid-1992, the median house price was $221,770. Fast forward 30 years to 2022, and it had risen to $1,124,421. Today, it’s $1,473,038.
This growth can be seen across other major cities, including Townsville, Brisbane, and the Gold Coast.
But what about more recent buyers? How much has your home’s value gone up since your purchase?
How much have property values risen since your purchase?
CoreLogic examined historical data to track how national property values have risen since the mid-1990s. The results show that the longer you've owned your property, the greater the potential increase in value.
Homeowners who bought in 1995 may find their property worth more than five times the original price, thanks to a 437% increase in value.
If you purchased your home around 2005, your property could have appreciated by around 148% (or 2.5 times what you paid).
Even recent buyers who purchased in 2020 may have seen a value increase of 34%.
If you bought your home just last year, you might already see a 4% rise in value.
Increase in national property values since purchase year
(Source: CoreLogic)
Why your home’s value increase is important
An increase in your property’s value offers more than just a reason to feel good about your investment.
In Australia, rising property values are a key source of wealth for many households. Better yet, an increase in your home’s value can make it easier to secure a better home loan, refinance, or use the equity to invest in a rental property, fund personal goals, or even cover your children’s education.
Take the first step on your property journey
Whether you're a first-time buyer or upgrading, keeping an eye on long-term growth is essential. Over time, the price you pay today could seem like a bargain, and you might be thankful you made the purchase when you did.
Contact us today to find the right home loan for your needs, or to explore refinancing options and unlock equity in your current property in Queensland especially in Townsville, Brisbane, or the Gold Coast.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au.
Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
