Here’s proof that million dollar deals are still out there.
Can you still make a million dollars out of property?
Are you kidding? The average investor in some suburbs of Sydney is making an profit of a million dollars, per deal!
That’s the latest insight from Corelogic’s Pain and Gain report, which takes recently sold properties, compares what the owner bought and sold it for, and determines the average pain or gain in each suburb.
And in some suburbs of Sydney and Melbourne, the average gain is a million dollars. And that’s the average. There must be many who made a lot more than that:
Houses in Sydney’s affluent suburbs delivered the biggest windfall for sellers during the March quarter as scarce supply and strong demand handed them more than $1 million in gross profits on average, CoreLogic’s Pain and Gain report shows.
Every house sold in Randwick, Ku-ring-gai and Canada Bay was profitable, rewarding vendors gains exceeding $1.1 million on average, while all inner west house sales made an average $850,000 profit.
Every house sold in Randwick and Canada Bay in the March quarter delivered at least $1 million in gross profits.
A combination of strong long-term gains and high demand for Sydney’s premium markets, as well as higher buying power, likely contributed to the strong gains, said Eliza Owen, CoreLogic head of research.
“In the past five years, the top 25 per cent of Sydney home values have increased 18 per cent and in the March quarter, the high end of the market was the first to show signs of recovery.”
Meanwhile, nearly all house sales in Melbourne’s wealthier areas such as Bayside, Boroondara and Port Phillip were sold for more than $900,000 profit on average.
Yep. I can tell you for sure that it’s not uncommon to bank a million dollar’s profit out of a single deal. It happens all the time.
And now imagine what happens if you have three or four deals a year, as some of my students do.
You begin to see the potential.
And you might say, hang on, we’ve just had a boom in property prices. Of course, the gains will be huge.
But look at what the experts are predicting. House prices are going to continue to grow:
The dominant force of rising demand coupled with low housing stock is expected to underpin the housing market recovery and fuel further price increases in the next few months, albeit at a slower pace, experts say.
“At present, the combination of low supply and strong demand from immigration is putting upward pressure on housing prices,” said ANZ senior economist Felicity Emmett.
“We see upward pressure on housing prices continuing in the medium term given the current shortage and the lack of new supply coming on as developers face a difficult combination of rising costs and rising interest rates.”
Look, if it’s one thing I’ve heard in property a million times is that all the opportunities are gone. It’s too late to make good money.
That’s never been true.
And it’s not true now.