When you should have bought in Australia’s capital cities

When you should have bought in Australia’s capital cities

You may have heard that the key to gaining capital growth from your investments is about “time in the market”, not “timing the market”.

This wisdom suggests that the long-term trend in housing and stock markets tends to be up. Therefore, holding on to your investments for a long period will help you weather short-term fluctuations.

But to use another cliche; hindsight is 20/20. The release of the December 2018 Domain House Price Report reveals that time in the market has not served buyers equally in every city.

The following graphs show how much money would be made from selling the median value house or unit in each city at December 2018, based on when it was purchased over the past 15 years.








Cont...

 

I think many property owners hang on to the concept that they've made money and hence their ahead because the nominal price of their property is higher than when they purchased it.

On another thread I criticised our politicians for quoting percentage gains for property that are clearly based upon nominal prices changes. Maybe they are smarter than I think. If they quoted percentage changes based upon real price changes...