Sydney investors have a lot to gain

Sydney-property-continues-to-bring-in-good-profits-_157_6001310_0_14101784_300The news couldn’t be better for those looking to sell or invest in Sydney’s property market – the NSW capital recorded the lowest percentage of loss-making resales in the September 2014 quarter, according to the CoreLogic RP Data Pain and Gain Report.

According to the report, only 2.6 per cent of Sydney properties recorded a loss in profit on their original purchase price, the lowest of all the state capitals. The report analysed the gross profit and loss on resales, finding that across Australia, 9.3 per cent of all home resales brought about a gross loss from the price originally paid by the owners. Fortunately, this figure is considerably lower than the same period in September, which saw 11 per cent of properties recording a gross loss.

Once again the figures reveal that Sydney is the shining star of the Australian property market, with demand from buyers and investors keeping the property market buoyant. Similarly, all the capital cities recorded stronger resale profits than their surrounding regions, with loss-making resales steady over the quarter and down from 7.8 per cent a year ago.

The report confirms that the relative pain of buying an investment home in Sydney will pay off in the long run, particularly if you hold onto the property for more than 15 years. Only 0.4 per cent of properties recorded a loss in resale when kept for this amount of time, while properties owned for less than a year recorded the highest proportion of gross losses.

Twenty-seven per cent of Sydney properties brought in a profit of between 25 to 50 per cent on their original price in September 2014. Sydneysiders also took poll position for those properties earning between 50 and 100 per cent profit on their original purchase price, with 23.9 per cent. While not being the at the top for a gross profit of more than 100 percent, the consistency of Sydney property profitability is clear evidence of the city’s dominating position in Australia’s property market.

So if you’re looking to invest or seeking advice about Sydney’s property market, the outlook appears sunny – especially if you are willing to pursue profits in the longterm.

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