New research from CoreLogic reveals that owners of investment properties are three times more likely to experience losses from resales compared to owner-occupiers. The study analyzed property sale results and found that 11.7% of investor sales nationwide resulted in losses, compared to 3.7% for owner-occupiers. The report suggests that investors, who often own units rather than houses, are at a disadvantage due to lower price growth.
Investing in real estate is far from a sure bet, with new figures from researcher CoreLogic showing owners of investment properties are three times more likely to incur a loss from resales than owner-occupiers.
In Sydney, 13.4 per cent of sales by investors were loss-making, compared with 5.9 per cent for owner-occupiers. Investors who sold Melbourne property in the June quarter did worse, with 17.9 per cent of sales by investors realising a loss, compared with 3.1 per cent of owner-occupiers. Bakos steers clear of apartments bought off-the-plan – both as in investment and to live in. The development could take longer to complete than anticipated and there could be variations in the apartment’s design.A purchase premium will usually be paid by buyers of new-build apartments that means the resale price could be lower than you paid for it, if you were to sell within the first couple of years of owning it, she says.
Investors who are intent on buying a unit should seek out smaller “boutique” blocks close to the city in a leafy street where most of those living in the block are owner-occupiers.
Real Estate Investment Properties Resales Losses Owner-Occupiers Corelogic Property Sales Price Growth
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IFM Investors, ISPT $240b mega-merger enters the final roundA tie-up between the two powerful industry funds’ investment platforms has been mooted in the past, but this time around the proposal has proceeded to an offer.
Read more »
Confusion among investors as funds wait for ESG labelling clarityA lack of consistency in the labelling of sustainable investment options is contributing to confusion among investors while the government considers reform.
Read more »
Confusion among investors as funds wait for ESG labelling clarityA lack of consistency in the labelling of sustainable investment options is contributing to confusion among investors while the government considers reform.
Read more »
Confusion among investors as funds wait for ESG labelling clarityA lack of consistency in the labelling of sustainable investment options is contributing to confusion among investors while the government considers reform.
Read more »
ESG funds are shrinking as managers, investors move onFor the first time, money managers in the United States closed more ESG funds than they opened. In Australia, flows are also slowing right down.
Read more »
Forget cuts, investors fear the Fed is not done raising interest ratesSome fear that the US central bank is being overly complacent, given inflation remains well above its target, and the improvement appears to be levelling out.
Read more »