It has been well documented that property prices in Australia, as well as many other parts of the world, have been steadily rising for a number of years. In Sydney, the average property price rose by an enormous 20% in only 12 months, showing just how rapid the spikes can be.
Whilst this is not the case for every city in Australia, it shows just how valuable property can be as an investment, especially if the current trend continues in terms of rising property value. Here is some information on treating your home as an investment.
The rising value of homes is definitely good news for those who bought their property before prices began to soar. There is clearly high demand for properties in the major cities, which are likely to see the largest levels of price growth over the coming years.
This has led many people to hold onto their homes rather than sell them, and there will no doubt be many investors waiting to buy property as cheaply as possible when the opportunity arises. It is right to be cautious, though, as wages have only grown by 13.2% over a five year period, potentially signalling that property may be becoming unaffordable for many.
Even if prices do eventually stabilise or even begin to fall in the short term, property is still likely to be an excellent long term investment, since the growing population will always be looking for quality homes to live in. Anyone who owns a home should treat it as a long term investment, keeping it in good condition to ensure it remains liquid.
Other forms of investment, such as trading forex, can often be far more unreliable and volatile then the property market, and very few global markets have the same long term profit margins which are seen in the property market today.
Any investment should be well nurtured, and property is no different. The only difference is that you will be living inside your investment. Maintaining your home; keeping the décor fresh and new, taking care of the essential structure and beautifying the external appearance all serve to increase the standard of living and to add value to your property which could prove to be lucrative further down the road.
Extensions are always a good method of increasing value, as well as upgrading the systems of the house. All the money you spend on renovations and additions will be returned if or when you sell the house on, whilst increasing the overall value of the house. As such, investing in your home can really pay dividends in the long run.
The time will eventually come to sell, and hopefully you will make a tidy profit having ensured your house is in excellent condition. To determine when to sell your house, you should keep an eye on the property market and keep an eye out for slumps in value and demand.
To determine a price, you should look at similar properties for sale in your area and see how much they are going for. There is plenty of really useful information on how to go about selling your house, so do plenty or research and consider everything which will add to the value of your home to maximise your profit.
In the current economic climate, treating your home as an investment is a necessity, as it is likely to be one of your most valuable assets. Considering the rate of appreciation in the property market, it is well worth taking the time and effort to add value to your home, as this will greatly increase the profit you make when it comes to selling.
We hope you found this article helpful. Thank you to Luke Hatkinson-Ken for writing this guest blog post.
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