Why You Should Hold on to Your Property
In property investing, one question that often gets raised by new investors is whether to sell or to hold. The answer would depend on various factors, such as the past performances of Australia’s housing market.
A Growing Investment
Take this couple for example. Sydney and Doris bought a home in the then up-and-coming area called Burwood in 1952. The couple knew the neighbourhood well, as Doris attended the Ashburton Primary School and Sydney met his would-be wife at the art-deco Regal Cinema.
According to Domain, the house they purchased, a cosy red brick veneer home, was worth 7,865 pounds or about $ 15,750 in today’s dollar. Now, the property’s value is more than $1.4 million — almost 90 times more than its original price.
So much has changed in the neighbourhood since they bought their house. The area where the property stands is now a part of Glen Iris, a premier spot in the housing market. The cinema where they met is now a block of apartments.
The demographics are changing as well, as younger residents move into the neighbourhood. “I’ve seen the transformation here as all the older families moved out and this younger breed moved in and it’s been a change for the better,” estate executor Jeff Smith said, who is also the couple’s son-in-law.
“It’s become a very desirable area for young, up-and-coming couples with reasonably good jobs.”
Property investing is a long-term pursuit, so you should be careful where you invest your money. You need to have a good plan and a good team to help you know which property fits your investing goals.
Our 44-point checklist, for one, can help you identify properties that have promising capital gains. Just like Sydney and Doris, you can reap huge gains from your property if you hold on to it for a long time and if you did your research right.
With the right investing strategy, you can also have a property portfolio to secure your financial future. Talk to our team now to get your property investing started.