Many believe that the “profit” on real estate is made in the acquisition, not the sale. In reality, it’s both.
Buying and selling at the right time will both make a difference to the equation. Of course, if you are moving to a similar property in a similar area, any capital growth may well be absorbed with the new purchase.
However, the right decision made years ago can deliver a real bonus, especially for those seeking to downsize.
In the September 2007 quarter, the median price of a house in regional Victoria was a then record of $264,500.
Then followed a change of federal government, and the Global Financial Crisis, which caused great anxiety.
The median price in regional Victoria did fall, but just 18 months later, it bounced to a new all-time high of $267,500 in the March 2009 quarter.
So how has the market performed since then?
In the March 2018 quarter, the median house price was $404,000 in regional Victoria, an increase of 51 per cent over the nine years.
Some locations have performed considerably better. The house median sale price in Geelong West rose nearly 117 per cent to $685,000, while Newtown’s latest median of $757,000 is 111 per cent higher than nine years ago. Medians in Highton and Belmont nearly doubled.
Across the City of Greater Geelong, there was an increase beyond 64 per cent, reflecting the increasing popularity of the state’s second city.
The median lift in the City of Ballarat exceeded 43 per cent, with the strongest growth in Ballarat Central, with a median house price of $422,500, up 83.7 per cent. Wendouree saw a boost of around 40 per cent. Bendigo was the strongest performer in its region, surging 40 per cent to over $340,000.
Gamblers say that “one can’t eat odds”. Nor can one eat percentages. But those who purchased at the then-record median high nine years ago, and have been paying down a mortgage, are likely in a strong position to dine out well should they choose to sell.
For more information on median prices, head to reiv.com.au/market-insights.