Based on the latest data, investors with a minimum 10 year investment horizon walked away with some dollars in their back pocket, but those who bailed out five years earlier or later had markedly different fortunes.
The June 2015 quarter Pain and Gain Report found:
- Homes that resold at a loss were owned for an average of 5.3 years.
- For those to profit from a resale, the average length of ownership was 9.9 years.
- Homes which sold for more than double their previous purchase price were owned for an average of 16.4 years.
On average, capital city resales out-performed regional markets, according to CoreLogic RP Data senior research analyst Cameron Kusher.
“Capital city housing markets continued to record a much lower proportion of loss-making resales than regional areas of the country,” Kusher said.
“The trends in regional areas are shifting with the proportion of loss-making resales trending lower in areas linked to tourism and lifestyle.
“On the other hand, housing markets linked to the resources sector are generally seeing an increase in loss-making resales after housing market conditions in many of these locations have posted a sharp correction.”
Read the full report.