What returns can I get from a property investment?
Let’s take a look at how property has performed over the past decade to help get an understanding of the returns that have been delivered to investors.
Source: RP Data August 2012.
Capital Growth – Historically houses have provided higher capital growth than units, however in recent years units have started to outperform houses in many capital cities.
An interesting trend that has been occurring across the combined capital cities is that units have recorded average annual growth of 3.6% over the past five years compared to 2.2% growth annually for houses.
The performance of units has outperformed that of houses over the past five years in Sydney, Melbourne, Brisbane, Perth and Hobart. According to RP Data “This is most likely a response to affordability constraints present in the market and subsequently buyers seeking more affordable alternatives to detached houses. “
Many people are seeking more convenient living quarters, smaller families and more focus on lifestyles. This could be one of the main causes as to why apartment style living is on the rise.