Property resales: nine out of 10 transactions make a profit
The latest data out of Corelogic illustrates just how lucrative property ownership can be with $18.2 billion in profits from resales recorded in the June 2017 quarter.
The statistic show 89.8 per cent of properties that were resold over the June quarter did so for more than the purchase price. The average profit for owners came in at $195,000.
Interestingly, it was owner-occupiers - not investors - that saw the greatest gains with overall profit-making resales estimated at 92.3 per cent. Investor profits across the capital cities was recorded at 88.1 per cent. It’s unsurprising to see that the regions across the country showing low profit resales are linked to the mining and resources sector.
This data reinforces the benefits of selling in a buoyant market. Corelogic states that whilst the powerhouses of the Sydney and Melbourne housing markets have delivered strong results, regions outside but adjacent to Sydney are also seeing fewer properties reselling at a loss. Similarly in Victoria, Melbourne continues to see relatively few resales transacting for less than the purchase price.