Median house prices could hit $1 million by 2019 fueled by strong population growth and a shortage of housing stock, according to the REIV and respected property research companies such as BIS Shrapnel and RP Data.
“What we have seen over the last 20 years is the doubling of the median every 10 years,” says REIV chief executive Enzo Raimondo.
Another record reached during the September quarter was that for the first time, there were 18 Melbourne suburbs that recorded a median of $1million or more.
For property investors, purchasing a property sooner rather than later will only enhance their opportunity to profit from its long term capital growth and relative security as a prudent asset class.
Certainly, the longer you delay in entering the property investment market, the harder it will be to take advantage.
According to BIS Shrapnel, purchasing a property today at the current median price in Melbourne of $480,000 and holding onto it for at least 10 years, could quite possibly give you a return equal to its purchase value of $480,000.
Outstanding; and this is achievable for many average Australians, however most are unaware how easy it is to do.
Historically, the same property in 1999 could have been purchased for the median price of $226,500 based on REIV Data.