NEWS:
1. (Real Estate growth 2005-2008 a bad period for purchasers) Rpt
Market Monitor
RBA Interest rate: 4.25% (22 January 2012)
RBA Inflation rate: 3.5 % (22 January 2012)
All ORDS: 4,303.00 (22 January 2012)
All ORDS End June 11: 4659.80
All ORDS End June 10: 4324.80
All ORDS End June 09: 3947.80
All ORDS End June 08: 5332.90
All ORDS End June 07: 6310.60
All ORDS End June 06: 5034.00
All ORDS End June 05: 4229.90
All ORDS End June 04: 3530.30
1. (Real Estate growth 2005-2008 a bad period for purchasers)
A large number of Sydney property purchasers, having purchased in the periods from 2005-2008 with no capital improvements made, who have sold or been forced to sell post this period have show little to no growth in cases.
These unfortunate buyers who have now sold, have taken losses, if not on the sale price, once loan repayments have been taken into account have suffered greatly.
As a very approximate guide, property needs capital growth of 4% pa compounded in the first five years to off set what would have been considered the alternative being renting a similar property and saving.
Given the approximate above of 4% pa compounded on a $500,000 house, which produces a figure of approximately $632,659 from 2005 to 2011 to cover costs.
This figure means growth of more than 25% from purchase, a figure many are not meeting without capital improvement.
Disclaimer:
The above figures have been obtained via third party information searches and should not at any time be relied upon. It is recommend professional financial advice be obtained.
Further opinions expressed are market commentary and should not be relied upon. For an individual valuation or report please fell free to contact us for a quote. | 
