The results of a new survey reveal that 45.6 per cent of investors plan to hold onto their property for at least 10 years.
The results of the annual Mortgage Choice Investor Survey have revealed investors have long-term goals in mind for their properties, having a 10-year long plan, or longer.
“Property investing is not a ‘get rich quick’ scheme. Potential property investors shouldn’t invest in this particular asset class if they believe that they are going to make a lot of money overnight,” said John Flavell, Mortgage Choice CEO.
“The reality is when you invest in property, it will take time before you see any significant growth in the value of your investment.
“In fact, most of the time when it comes to property investment, the longer you hold onto the dwelling, the more money you stand to make.”
Mr Flavell highlighted costs associated with property, like stamp duty, agent fees, and pest and building inspections, can be offset over long periods of time.
He also mentioned how houses sold only after a few years are at the mercy of housing market cycles due to softened markets, and recent research proves holding onto property for a longer period of time could guarantee profit.
“National figures from CoreLogic’s recent Pain & Gain report found that in the March 2017 quarter, houses that resold at a profit had typically been owned for 9.1 years, and apartments that resold at a profit had been held for 7.6 years,” Mr Flavell said.
“On the other hand, houses that resold for a loss had typically been owned for 6.3 years, while apartments that resold for a loss had typically been owned for 6.9 years.
“Of course, each city and region will differ, and at the end of the day, no one has a crystal ball to predict what will happen in the future.”
Mr Flavell added there is no better time to purchase property than now, but to make sure investors take enough time to do their homework beforehand.
“If you are intending to buy an investment property, make sure you approach it with a long-term vision,” he said.
“Do plenty of research and take note of any areas that are poised for growth in the coming 10 years. New infrastructure projects can be a good indication that a suburb will see a rise in demand for housing.
“At the end of the day, property investment is a significant financial decision and not one that should be taken lightly. Do your research, deal with professionals, and always take a long-term approach.”