I came across this article on Michael Yardney's Commentary site and found it useful in determining the value of property and the state of the market in Perth compared to the other cities of Australia. This is why now is a good idea to value your home investments to check your property investment strategy growth to see how you benefit from this.
Capital City Properties Grew In Value More Last Year Than In Most Years – Cameron Kusher
Let me show you a snapshot of some of the findings he had concerning the value of property, to give you a better idea of how to value investment property:
The capital city housing market returned above average value growth in 2013. Combined capital city home values increased by 9.8% in 2013, which is above the long-term average growth rate of 7.5%. According to the RP Data-Rismark Home Value Index, the value of property in capital cities increased by 9.8% in 2013 which is a high growth rate than any other in the last five years. This is good news for people with a growth investment strategy.
Throughout the past 18 years, there have only been three calendar years in which the value of property has fallen. The value of property fell by -4.1% in 2008, -3.8% in 2011 and -0.4% in 2012. Looking at the difference between value growth for houses and units you can see that house values have typically increased at a faster pace than unit values over the past 18 years. These findings are useful when figuring out how to value investment property.
For houses, total value growth was strongest between 1998 and 2003 in Sydney, Melbourne, Brisbane, Adelaide, Hobart and Canberra. In Perth and Darwin, the period from 2003 to 2008 was the strongest for growth in the value of property. The trends for units are similar with total growth for units across individual capital cities typically much lower than the level of growth for houses. If you are in a capital city, it might be a good time to value your home investments.
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