Property market information: Profit-making sales turn pain into pleasure

By the resi financial blog team, 02 April 2015

Property market information: Profit-making sales turn pain into pleasure

When you're on the look out for an investment property, you'll likely be thinking about the profit you can turn when it comes time to sell. Choosing the right region to achieve this in might seem tricky, but there are plenty of resources - and advice - available to help you select a suitable area for capital growth.

CoreLogic RP Data's quarterly Pain and Gain Report can provide useful guidance in this regard, as it sets down which cities and suburbs across the country recorded the most profit-making sales. The outlook appears bright for vendors around the country. CoreLogic analyst and the report's author, Cameron Kusher, revealed that the number of properties that were sold at a loss dropped dramatically over the December quarter last year. 

From 9.1 per cent in the previous quarter and 9.6 per cent in the same period a year ago, the proportion of loss-making sales fell to 8.6 per cent in the three months to December. Mr Kusher did note that there was bit of difference between property types, location and even the length of time the property had been owned for.

"Sydney, Perth and Melbourne have seen the lowest proportion of loss-making resales.," Mr Kusher said.

"Similarly Regional NSW and Regional Vic have recorded the lowest proportion of loss-making resales across the regional areas."

Sydney topped the list and vendors in the city look to have enjoyed a profitable sales quarter. Only 2.4 per cent of sales in the Harbour City made a loss, while Perth and Melbourne also joined at the top of the table with 5.5 per cent and 5.6 per cent loss-making sales respectively. On the other hand, out of the capital cities, Hobart saw the highest number of vendors who recorded a loss at sale time, with 15.5 of properties showing this result.

Given that house prices across the capital cites rose 1.4 per cent in March alone according to CoreLogic's Home Value Index, property owners could earn a tidy sum at sale. To get on board with these sales, you'll first need to get in the investment game. Contact a loan specialist at resi for a range of investment loan opportunities

Categories: Property Investment