19 Jan Is It True That Property Prices Double Every 7-10 Years?
The question of whether home values double every 7 to 10 years is guaranteed to raise debate.
While some argue that property buyers should expect a doubling of their money every 7-10 years, others believe this is simply not the case.
Property analytics provider, CoreLogic RP Data recently tried to find the answer, with a study that compared home values across capital cities. It found that in the ten years to 2006, home values more than doubled across each capital city, but in the ten years to 2016, growth was half that of the previous decade. Melbourne is the only capital city housing market in which home values doubled between 2006-2016, although Sydney and Darwin each recorded an increase of more than 75%.
So, what does this mean for you? As a property investor, it’s a timely reminder of how important it is to buy the right property, at the right price and in the right location. A powerful way to push the odds in your favour is to buy property in an area that has a long history of strong capital growth.
Also, look for properties close to employment and amenities like schools, shops, and transport. Don’t buy the property because it appeals to you; think about what owner occupiers would like and the features that are going to remain popular in the future, such as entertaining areas, open plan living, natural light and an appealing kitchen.