Property market information: Australians owning their home for longer

By the resi financial blog team, 09 April 2015

Property market information: Australians owning their home for longer

When you have first purchase a home, the excitement that comes with change can push everything else well into the distance - but it's worth having a think about your long term objectives. Will your home be a base for your growing family? Or simply a property to renovate and resell? Recent research from CoreLogic RP Data suggests that more Australians are actually owning their property for longer than ever before, which could have some interesting implications.

While households were typically holding onto their home for around 9.6 years on average by the end of 2013, the study now shows that across the combined capital cities, the average hold period for a house has stretched out to 10.5 years. Units are being owned for slightly less time - 8.7 years - but this is still a relatively big jump from 8.4  years only 12 months earlier. 

The results seem to reflect where property prices have shown the strongest growth. In the surging Sydney and Melbourne markets, houses were owned for an average of 7.3 and 8.5 years respectively back in 2004 - but this has lengthened considerably. In 2014, property owners in the New South Wales capital held onto their homes for a whopping 11.2 years, and Melbourne houses stayed with their owners for an average of 11.8 years. 

Even in Darwin, where owners kept their homes for only 3.1 years in 2004, the average hold period has more than doubled to 6.7 years. The report noted that homes in regional areas tended to be sold a lot more quickly than those in the city - but only marginally. A regional house was owned for 10 years in 2014, rising from 9.6 years at the end of 2013. 

The research points out that this could have a lot to do with the cost of buying and selling a home in recent times, which might shed some light on your own strategy. CoreLogic's Pain and Gain report outlined that homes owned for a longer period of time - 10.2 years on average - were more likely to make a profit at sale, so it's worth thinking about how you will use the property in the future.

Whatever your plans, it's important to have the financial side sorted before you make any decisions. Get in touch with a loan specialist at resi for a great range of home loan possibilities. 

Categories: Home Loans