Powered by MOMENTUM MEDIA
realestatebusiness logo
Powered by MOMENTUM MEDIA
Subscribe to our newsletter SIGN UP

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

news image

Land tax reprieve now available in NSW

May 27, 2020Grace Ormsby

Landlords who are providing their tenants with rent relief during the COVID-19 crisis are now able to apply for land tax concessions. ...

REB_top100agents
top 10 agents

1

Alexander Phillips

Year of Experience: 20

Support Staff: 3

Residential Properties Sold: 215

Total Value of Residential Properties Sold:

$ 522,477,791

VIEW COMPLETE REPORT

Have you experienced sexual harassment or bullying in the workplace?

Yes, I've been the victim of sexual harassment (15.8%)
Yes, I've been the victim of workplace bullying (21.1%)
No (63.2%)

Total votes: 19
The voting for this poll has ended on: April 30, 2020
TECH MARKETING SALES BETTER BUSINESS PROPERTY MANAGEMENT
Neville Pozzi reb REIWA rolls out new ‘digital doorknock’ strate ...

The Real Estate Institute of Western Australia’s longstanding partnership with The Salvation Army is seeing the real e ...

Property technology app smartphone reb App aims to kickstart the real estate market

As the real estate industry continues to adjust to the new norms brought about by the COVID-19 pandemic, an app develop ...

Kul Singh reb New integration to provide better buyer experience

Openn Negotiation has confirmed a new integration with realestate.com.au which aims to provide a better experience for b ...

REA Group HQ office reb REA Group to take Prop20 digital

REA Group has confirmed its Prop20 series will be transformed into a digital experience. ...

Michael Johnson WEB How COVID-19 has been impacting real estate agents ...

In April, Momentum Intelligence conducted a major survey to understand how the coronavirus pandemic has been affecting t ...

Tom Panos 140520 What’s Making Headlines – 14 May 2020

What’s Making Headlines is your new source for all the latest in Australian real estate news. ...

Heath Williams WEB Selling Brisbane’s most luxurious properties dur ...

After an initial lull, things have started ramping back up in the Brisbane property market, but Heath Williams, lead age ...

Michael Clarke WEB How the best agents are continuing to thrive throu ...

According to Clarke & Humel's Michael Clarke, the challenging nature of the COVID-19 real estate market is actually ...

Michael Johnson WEB How COVID-19 has been impacting real estate agents ...

In April, Momentum Intelligence conducted a major survey to understand how the coronavirus pandemic has been affecting t ...

Tom Panos 140520 What’s Making Headlines – 14 May 2020

What’s Making Headlines is your new source for all the latest in Australian real estate news. ...

Heath Williams WEB Selling Brisbane’s most luxurious properties dur ...

After an initial lull, things have started ramping back up in the Brisbane property market, but Heath Williams, lead age ...

Michael Clarke WEB How the best agents are continuing to thrive throu ...

According to Clarke & Humel's Michael Clarke, the challenging nature of the COVID-19 real estate market is actually ...

Positive Mindset in Business reb The impact of a positive mindset in the business o ...

Let’s be real: running a business or an office is stressful. Here’s a quick rundown of some insights on keeping yo ...

Cameron Black reb Lies and statistics: Has the property market actua ...

It seems like there has been a huge change of sentiment in the last month as a confluence of factors has come together t ...

short 850x400 june2019 How to get that big win

Getting a big win is more than just sales. It involves strategic planning and setting goals, according to real estate bu ...

MeganSmith 050719 cropped Ray White’s Megan Smith sells $14m property in B ...

Ray White Balmain sales dynamo Megan Smith has sold one of the most expensive houses in Australia this year, with the pr ...

suburbs high shot reb Forward indicators point to property recovery

The property market is beginning to show signs of life, with sellers looking to cash in on buyers’ demand, according t ...

housing properties reb ‘No signs of distress yet visible in housing mar ...

While the current crisis could exacerbate high mortgage debt, there are currently no signs of distress visible in the ho ...

home owners reb Home owners given stern warning on upcoming regula ...

Property managers in Victoria should advise caution to home owners, after a stern warning was issued about regulations s ...

Rolf Howard reb Will recent changes to tenancy laws tip the scales ...

The Australian rental market has long been considered by many commentators to favour the landlord over the tenant. Unlik ...

EVENTS
REBAWARDS Listready
Real Estate Business Awards 2020

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

Learn more >
FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?

Mythbuster: Do properties double in price every 10 years?

09 October 2014 Greg Dickason

In my previous article I asked if the myth that properties turn over on average every seven years was accurate? We busted that myth and showed that it was closer to the truth in the early 2000s and that since then properties are being held longer.

 

What about another myth of real estate: the myth that property doubles in price every 10 years? To put another way, that it has returned on average seven per cent growth per year over 10 years.

I went back to Paddington, NSW and Paddington QLD to see how houses had gone over the 10 years to May 2014. 

Advertisement
Advertisement

Since 2004, neither of the Paddingtons had doubled in price – in NSW the price had gone up only 45 per cent and in QLD the price had gone up 89 per cent. Put another way, the average growth in Paddington, NSW over the 10 years to May 2014 was 3.9 per cent and in Paddington, QLD it was 6.6 per cent.

For the whole of the Brisbane Council area the 10-year growth was 61 per cent, and for Woollahra NSW, which includes Paddington, it was 42 per cent.

Looking at houses in other suburbs in other parts of the country most did not double in 10 years, although Western Australia stands out as making the magical ‘doubling’:

Suburb

Median Price (June 2004)

Median Price (May 2014

% Return over 10 years

Toorak VIC

$1.67 million

$2.72 million

63%

Spearwood WA

$235,000

$520,000

121%

Coodanup WA

$146,250

$305,000

109%

Darra QLD

$186,000

$330,000

77%

Unley SA

$535,000

$880,000

64%

Sandy Bay TAS

$452,500

$650,000

44%

So it looks like the myth might be busted.  However, let us get a little creative and include net rental returns excluding any interest payments.  Assuming net rental return is approximately 40 weeks per year to accommodate rates and body corporate fees, plus letting costs and some maintenance, then the situation changes quite substantially:

Suburb

% Growth in median price

Additional $ Returned from Rental (approx.)

% Return over 10 years assuming rental income not re-invested

Paddington NSW

45% ($1.06 million to $1.54 million)

$320,000

75%

Paddington QLD

89% ($475k to $898k)

$200,000

131%

 

The rental income makes a substantial difference to the net return over a 10-year period.

My conclusion? This is a case of ‘depends’, in pure terms prices don’t seem to double every 10 years, but taking into account rental returns doubling your investment return in 10 years is certainly possible.

If you have suggestions for other myths for me to check for next month, send them in and I will do some research for you. 

 

Mythbuster: Do properties double in price every 10 years?
greg dickason 500
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.