The idea of making money in the current market may seem far-fetched, but property investors are celebrating some big wins according to findings from Core Logic. Last year, investors gained from a national rise in median property price of 8.1 per cent, and a rise in rent at 8.3 per cent.
It’s fair to say that most investors are relying on these rises to gain back what they initially spent on their investment properties. After all, house prices have gone up dramatically since the pandemic, rising a mammoth 24.7 per cent during 2021, before ‘ebbing’ at 4.9 per cent in 2022, and reaching 8.1 per cent last year. It means that Australia’s median property price is now at $757,746.
Due to this, it’s encouraging to see investors have a double wealth gain in the new year.
That said, do you remember seeing house after house with sad ‘For Sale’ signs standing out the front, begging to be sold in the last 24 months? It seems the tide is turning and properties are beginning to sell again. And investors are partially to thank.
In November, investors took out $9.72 billion of home loans.The ABS tells us this is 18.0% higher than the year before. That means more movement in the market and more competition from lenders. And that’s where we come in.