RCR Finance Bulletin # 25 - Thursday 13th August 2009
Property Rule of Thumb
At RCR Finance we believe in the fundamental "Rule of Thumb" that property prices in Australia double approximately every 7 - 10 years.
The latest data from RP Data shows that the median price for a home in March 1993 was $134,544 and today is $458,908 (i.e. thats a 198% increase).
This is an average of 8% a year for 16 years, and underlines just why investment property is able to deliver results that are virtually unmatched.
Home owners will have seen their equity grow, while investors are enjoying excellent capital growth as well as strong rental yields due to the national chronic shortage of rental accommodation.
What is interesting however is that this growth was measured after the worst economic conditions in 70 years.
Many economic and financial commentators are saying that Australian property has weathered the Global Financial Crisis well, and the growth figures underpin our view why long term investment property makes such good sense.
DISCLAIMER...The information contained within this Newsletter / Bulletin is of a general nature only and is not intended to be relied upon or to be construed as the giving of professional financial, legal or economic advice. RCR Finance Pty Ltd makes no warranties or representations whatsoever regarding the quality, accuracy, or otherwise of any material contained within this Newsletter / Bulletin. RCR Finance Pty Ltd will not be held liable to readers or users of the material contained within this Newsletter / Bulletin for any loss or damage however caused resulting from the use of the material. All readers or users are advised to seek their own independent professional financial, legal or economic advice.
