Today’s edition of the blog will be short and sweet, I have a race to watch.
Like most things in life, you have to be in it to win it. Now being ‘in it’ comes with both risks and rewards. Hindsight, however, provides no consolation to the spectator for opportunities missed. Fortunately for property investment, the odds are far more in your favour than they are for that Melbourne Cup punt.
That doesn’t mean you go in blindly and play the property edition of ‘pin the tail on the donkey’ to select an asset. An asset class worth in excess of six trillion dollars deserves more respect than that. Our research makes a compelling case of property outperformance when guided by the philosophy of the right property, in the right market, at the right time. Here are just a few examples:
The Right Property – Case Study
The average annual growth rate for Sydney City studio apartments (under 50 square metres) over the decade up to 2015 was 3.3%. The figure for one bedroom apartments (above 50 square metres) was 5.6% per annum over the same period. Had you invested in a $400,000 one bedroom apartment in 2005 you’d have an additional $156,000 capital gain to what you would have earned on a studio of the same price!
The Right Market, At the Right Time – Dollar value
- Had you invested in a $500,000 property in Brisbane in 2004, you’d have had more than $200,000 in equity by 2007 to help build your portfolio compared to $93,000 in Melbourne and negative $40,000 in Sydney
- Invest in a $500,000 property in Melbourne in 2008 and you’d have $175,000 in equity by 2010 compared to $126,000 in Sydney and $75,000 in Brisbane
- Invest $500,000 in Sydney in 2010 and you’d have $200,000 in equity by 2015 compared to $115,000 in Melbourne and $112,000 in Brisbane
I’ll leave you with this:
You miss 100% of the shots you don’t take – Wayne Gretzky