Over time property prices historically go up, but by how much and over what period?
I recently tracked vacant Rural Residential land values in Flaxton over a period of twenty years from 1990 to 2010.
Whilst the annual gain wasn’t consistent, over that period the average was between 10% and 11% per annum.
During the last ten of the twenty years (1994 through 2004) values flat lined and prices did not change, and taking into account inflation property values effectively decreased.
But like the stock market, a correction eventually occurs and with increasing activity from the period 2003 through 2005 it culminated in a doubling in value in the last six months of that previous ten year period!
So, as you can see from this somewhat radical example, in the past, if you held property long enough the gain would occur, if not annually, at least over a period of time.
What will it do in the future?
Who can say, but I believe property on the Range is very well placed to experience continuing capital gain.
We have a finite land supply on the Range with an area approximately 25kms north to south and an average 10 or so km’s west to east, with escarpments on three sides and 10,000 hectares of National Park controlled land to the north.
Add to this the scenic attractiveness, the climatic advantages, the rural amenity – and – the biggest one of all – the growing desirability to those “trapped” in the ever growing “urban jungles” off Range both locally and elsewhere in Australia.
To establish just where your property stands in relation to capital gain – just ask a reputable Agency for a Market Appraisal which they must complete in writing as a Comparative Market Assessment.
Next month I’ll address this appraisal process in detail.
John Taylor (23 years Range Real Estate experience)
Montville Real Estate
200 Main St,Montville
Phone 5478 5478
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