Capital gains on property are a glorious thing. If you buy well you may enjoy a larger gain than expected, netting you a tidy profit which could set you up for life.
Over 92 per cent of Aussies who sold in the March Quarter of 2016 enjoyed a profit on sale according to CoreLogic RP Data, meaning it’s something you too can achieve. So to help make sure you’re in the 92 per cent and not the eight, here are a couple of tips to help guide you to maximum capital gains from your property. Following these will surely make paying off your investment loan a breeze.
Location is all important
When buying for capital gains location isn’t everything, but it’s pretty close. During the March quarter of 2016, almost 98 per cent of Sydney sellers made a profit on their property as stated by CoreLogic. Compare this to the Western Australia success rate of under 75 per cent and you can begin to see how important the area you buy in is.
The first thing to consider is an area’s growth prospects, compared to the price of buying there – placing importance on finding low-cost high growth suburbs in which to buy. Generally the highest rates of growth can be seen in Sydney and Melbourne or surrounding areas, which according to a Residex report account for 50 per cent of all dwellings in Australia.
Over 92 per cent of Aussies who sold in the March Quarter of 2016 enjoyed a profit.
Despite this, buying in the city central may exceed your budget, so looking in lower cost areas surrounding capital cities may be more realistic. One area in particular which is performing miraculously well is the Bega Valley, a small suburb near Sydney that saw a 49 per cent increase in median property value from 2014 to 2015, according to a report by NAB compiled using CoreLogic data.
Finding your own Bega Valley before its prices skyrocket is key to making massive capital gains on your investment.
The prospect of quickly netting a massive profit from your property can cause buyers to dive into investments headfirst to make a quick dollar. It’s important you proceed with caution, treading carefully during the first steps towards making an investment, ensuring you’ve secured the most suitable loan possible with the help of a licensed Australian mortgage broker.
You can contact a Smartline Mortgage Adviser on 13 14 97 for mortgage advice. Or complete ourcall request form and we’ll call you!