We’ve all heard the saying, “a picture is worth a thousand words.” Well, we’d like to show you some Perth property maps that are literally worth hundreds of thousands of dollars!
Investor Assist presents median house price data for Perth suburbs into a series of highly revealing maps. The maps compare median house prices from 1985 with those of 2010.
If you need any more evidence that property is a sound long term investment after looking at the maps, then you may never be convinced!
Before you read on, go to the bottom of this article and download the maps in the pdf to see what we are so excited about.
So what do the maps tell us? Clearly, property prices have gone up… a lot. However, there are a several important points to take away from these maps.
Over the 25 year period, median house prices increased near ten-fold across the board; in many cases much more so. Even though prices would have increased at varying rates – and even would have gone down at times – the charts prove that property provides excellent returns for those with a long investment timeframe. It’s important to remember these are median prices. In other words, they are the middle price for the suburb, exactly half-way between the best and worst performers.
Yet astute investors will look for sound investment properties that actually exceed averages. For example, properties in areas where land is, or will be, scarce, and those within close proximity to convenient transport routes and popular amenities.
Look closely and you’ll see some suburbs performed better than others. Typically, Perth’s inner and coastal suburbs performed best overall. However, there are a host of other suburbs that also performed extremely well. For example, much of the “northern corridor” is now highly sought-after, along with a host of south-eastern suburbs, something only astute investors may have imagined in 1985. Again, it is a sound reminder of the importance of being objective when investing in property. This will help you to recognise properties that will be valuable in the long term, not simply suburbs that are currently popular.
25 years! I can’t wait that long…
The value of these maps is that they remind us property goes up in value substantially over the long term. Investor Assist does not necessarily recommend investments of this length, since every investor is different and it may not take that long to achieve your goals. However, in the context of a broader investment or retirement plan, imagine the benefit of investing in a property that achieves this sort of return over 25 years? It would become the cornerstone of a portfolio, no matter your age or situation.
For example, consider an investor in their thirties or forties. An investment timeframe of 25 years means they could plan to sell the property just prior to retirement – the perfect way to fund their post-work lifestyle. In the meantime, they could use the equity earned in the property as a basis for expanding their portfolio.
Even if retirement is not far away, a 25 year investment timeframe may still make sound financial sense. After all, the average life expectancy in Australia is now well into the eighties, and increasing. Statistics show those retiring at 65 will live for another 18 years. Many people will therefore need to invest wisely during retirement, to ensure they can maintain a comfortable lifestyle.
DISCLAIMER:This information is of a general nature only and does not constitute professional advice. We strongly recommend that you seek your own professional advice in relation to your particular circumstances.