![]() | |
![]() | |
![]() |
Real Estate Information |
|
![]() |
How Professional Property Investors Interpret and Use Capital Growth Statistics
Understanding and using yearly price growth statistics in an area of interest is critical to making successful property investments decisions. Property price growth is usually expressed in terms of a percentage i.e., 10% to 25% or more over a period of a year. But, what does this really mean. Some property agents would have you believe that you will achieve great capital gains in an area with high capital growth. The problem with this is that capital growth figures are often skewed by new developments in the area of interest. An area that experiences a lot of new development will have a high capital growth because the cost to build a new property increases over time but it doesn't mean that older properties will have the same capital growth. Example; In Sydney, Australia, a suburb close to the city and on the harbour, Darling Point, experienced apartment capital growth of 68.7% in one year, 2003, but the average the trend has been 9.9% since 1991. Taking those figures literally means that the average price of apartments in the area has gone up 68.7% i.e., a unit that was $400,000 in 2002 has gone to $675,000 in 2003. This article may be used provided the resource box below is included.Does this mean that a unit that I purchased in 2002 in an older building went up by $274,800 in one year? The answer is no. It only went up 9.9% or about $40,000. Why? The reported average price growth, expressed as a percentage, takes into account new apartment sales and re-sales of existing apartments. These figures will not accurately represent what is actually happening in the area and can be misleading. Building costs have rising substantially over the past few years in Australia and USA as a result of the real estate boom. In Darling Point, Sydney, several new, luxury apartment blocks had been built and sold during this period and they represented a high than normal percentage of apartments sales. As a result the figures for capital growth in the area were skewed upwards. Older apartment blocks experienced a modest increase in capital growth, consistent with average capital growth figures of 9.9%. However, this does present other opportunities! Advertising and marketing of the new, luxury apartment blocks brought potential buyers into the area. The opportunity for the investor was to purchase an older apartment, to be re-furbished to the same standard as the new ones creating value and benefiting from higher new apartment prices. This created a similar apartment but at a lower cost. Buyers looking for the same quality internally could obtain this but at a lower price. The buyer has set expectations of value for price and sees the renovated apartment as great value compared with the new ones. Thus, advantage has been taken of the marketing and building of the new luxury apartment blocks to create good profit for the investor. This article may be repoduced provided the resource box at the below is included. John Moore is President of the Property Investors Association of Australia (PIAA) and a Property Consultant. He has helped many people create wealth through property and is dedicated to providing property investors with the knowledge to assist in make prudent property investment decisions. Find out more about Property Investment Strategies and Information from the PIAA web site. http://www.piaa.asn.au
MORE RESOURCES: The dreaded Zillow ban is finally here. Here's what you can do Business Insider Zillow’s now enforcing its listings ban: 3 things to know Real Estate News by RealEstateNews.com Alexandria Real Estate: The REIT That Nobody Seems To Want (But Maybe Should) (NYSE:ARE) Seeking Alpha Colorado mountain town real estate markets see surge of new listings, price drops — but is it a buyer’s market? SummitDaily.com Real estate transfers in Adams County from June 16-20, 2025 Muddy River News Post-Gazette journalists win national awards in coverage of real estate, religion Pittsburgh Post-Gazette Realtors: Home prices continued to dip in Sarasota, Manatee real estate market during May Sarasota Herald-Tribune NEUBERGER BERMAN REAL ESTATE SECURITIES INCOME FUND ANNOUNCES DECLARATION OF REGULAR MONTHLY DISTRIBUTION PR Newswire The Flathead’s Frozen Real Estate Market Begins to Thaw Flathead Beacon Unlocking Japan's Dormant Real Estate Potential: Marubeni and Dai-ichi Life's Bold Venture - AInvest Real estate business opens new Fleming Island office The Ponte Vedra Recorder Here are businesses on the move in Marin, Solano and Sonoma counties The North Bay Business Journal Egypt Sherrod Shares Heartbreaking News About HGTV's 'Married to Real Estate' Country Living Magazine Crow Holdings Capital: Specialty real estate surges as investors chase demographic-driven demand Private Equity Real Estate | PERE Nuveen: Leading the way in a changing real estate market Private Equity Real Estate | PERE 'Keep it moving': HGTV cancels TV show hosted by Georgia couple after 4 seasons Savannah Morning News Zillow readies for battle with Compass Real Estate News by RealEstateNews.com The Face of Real Estate in West Sonoma County pacificsun.com Texas Employees commits $483 million to real estate, private equity, infrastructure Pensions & Investments Alexandria Real Estate: Behind Fantastic Dividends, 3 Key Facts To Understand Its Resilience Seeking Alpha LaSalle on real estate: the world’s simplest, most complicated asset class Private Equity Real Estate | PERE Real Estate Transactions, June 30 edition Hopkinton Independent Seattle City Employees slates €60 million for European real estate fund Pensions & Investments Rockpoint: Back to basics: Real estate’s next chapter will demand local insight Private Equity Real Estate | PERE NYLI CBRE Real Estate Fund Q1 2025 Commentary Seeking Alpha Brooks Ballard International Real Estate Celebrates Transition, LGBTQ+ Owned Business of the Year Award Recognition Business Wire AXA IM names real estate heads for North America and Asia-Pacific Pensions & Investments Logistics and warehousing dominate Lehigh Valley commercial real estate market Lehigh Valley Business Two local real-estate firms merge to form Venture Fox Realty Group The Altamont Enterprise Rosa Hawes, trailblazing Dayton real estate pioneer, civil rights advocate, dies at 94 Dayton Daily News A Long, Winding Path to Selling Real Estate in the Hudson Valley The New York Times Hyatt to Sell Playa’s Real Estate Portfolio Daily Lodging Report Real Estate: June 16 to June 20 Newport This Week Real Estate Transfers: June 30, 2025 The Owensboro Times Form 424B3 Forum Real Estate Income StreetInsider Impressive Westport home on 7 lush acres sells for almost $1M: Weekly home sales Fall River Herald News NMPERA reveals $20m additional commitment to real estate fund Private Equity Real Estate | PERE Real estate tax deadline today Butler Eagle HGTV cancels Atlanta-based show ‘Married to Real Estate,’ hosts say Atlanta News First Hyatt to offload Playa real estate, remain operator HOTELS Magazine EMS Commercial breaks down how experience translates to savings when investing in real estate WMAR 2 News Baltimore Apple spends $517 million on Bay Area real estate in a single week San Francisco Chronicle Neuberger Berman Real Estate Fund Maintains Steady Monthly Income With $0.0312 July Distribution Stock Titan 20 Indispensable AI Tools for Real Estate Agents HousingWire Amanda Carter: Premier Hervey Bay Real Estate Agent Redefining Client Success and Community Engagement GlobeNewswire Radio Real Estate 6/28/25 My Bellingham Now Mansion in The Ridges hits the market for $9.8 M Las Vegas Review-Journal Black Opal Insurance Launches Investor-Focused Property Insurance Platform for Real Estate Pros Yahoo Finance The Best Real Estate Agent in Douglas Lake: Katelyn Warren ACCESS Newswire Vendor & Real Estate Partners Dollar Tree Jewish real-estate investors look to Israel amid Mamdani victory The Jerusalem Post Berkshire region real estate sales – June 27, 2025 The Berkshire Edge Major Last-Mile Deal: Town Lane Acquires Massive 2.7M SF Industrial Portfolio in High-Growth Raleigh Market Stock Titan |
![]() |
![]() |
![]() |
RELATED ARTICLES
11 Different Ways to Participate in The New Millennium Real State Boom Many parts of the country are going through a real estate boom. In recent reports real estate is showing double digit growth in many parts of the country. Use Targeted Decorating To Get A Higher Price For Your House This article will show you how to sell your home quicker, get a higher price for it by using smart decorating techniques.The secret is to make your home feel like "my home", for the buyer. Curb Appeal First impressions do make a difference when selling your home. Oftentimes, before making the phone call to schedule an appointment, a homebuyer will drive by your home to determine if they may be further interested. Look Past the Bottom Line for a Propertys Potential It's unfortunate that many real estate investors tend to look at the bottom line when deliberating about a property, rather than the big picture. The real moneymakers in real estate investments are the people with vision, who think creatively, and are willing to assume some level of risk. 3 Strategies For Buying Property With No Money Down Everyone has heard a story or read about someone who bought a property without paying a single dime as a down payment. But how does this work?There are several "classic" methods commonly used to purchase real estate with no money down. How Do I Bring Consulting Into My Lease Purchase Business As you are making your cold calls on property, you will run into sellers that are having a hard time selling, however, the numbers just don't work for you to take on the deal. Do you just say, "I can't work with those numbers". Selling a House is Easy The thought of selling a house strikes fear into most people. The contracts, the legalese, the exorbitant costs - they all conspire to make the experience unpleasant at best, and a nightmare at worst. Selling Your Home: The Power of a Great Sales Flyer Even though its importance is often overlooked, a great sales flyer is one of the most effective tools for selling your house. Whether your home is listed with an agent or not, make sure that you have a dazzling flyer. Negotiating and Sales Skills Are Critical When I first started getting active in creative real estate, my skill set at negotiating was very weak. I had done the telemarketing thing for American Express as a financial planner and had studied and learned a few techniques. Water, Water Everywhere on the Waterfront Waterfront living is among the most desirable of locations in our area (Florida). The views and vistas are fantastic, not to mention the ability to walk out one's door to drop a line to fish or untie a line to enjoy boating. If Your House Is a Mess, You Dont Have To Sell For Less Don't be tempted by "We Buy Houses" or "Sell Your Ugly House in 9 days for Cash" ads.These savvy real estate investors look for sellers under duress. Loan Officer Training: Learn How To Shape Realtors Perceptions In medicine, a placebo is a pill that you think will make you better, and so it does. In your business, a placebo is a prospect having the experiences they expect to have, and so they have them. Ten Big Mistakes That Will Lose That Property Sale If you are serious about selling your home, you probably go to a huge amount of effort when you show potential buyers around your property. You clean the bathroom until it sparkles; vacuum the carpet; brew coffee or bake bread; maybe you even banish the kids to their grandparents, but did you make one of these Ten Big Mistakes that can lose the sale - but are so easy to avoid. Dramatic Profits From Preconstruction Real Estate Investing The preconstruction process is an innovative real estate investment opportunity in which you buy tomorrow's property at today's price. Preconstruction investing is a boon for the investor or buyer as well as the developer or builder. Dont be Tempted by We Buy Houses (Updated) Do you want to sell your home right away? Don't be tempted by "We Buy Houses" or "Sell Your House in 9 days for Cash" ads and billboards.Savvy real estate investors run these ads and put up posters looking for sellers under duress. Home Buying - School District Issues A good school district is a key factor in home buying if you have kids. It can also be a positive selling point when it comes time to sell your home. Find the Right Apartment Quickly and Easily Using an Apartment Locator Service You've probably seen the ads or heard about apartment locators. But what do they really do and why should you choose an apartment locator to help you find an apartment area?One of the biggest reasons to use an apartment locator is the fact that there are hundreds of apartments to choose from. Fantasy Gap [fast money in real estate] I was in the rental business for seven-years, made 1.3 million dollars the first five years, got ill, and had to get out of it slowly, but had the money to do it. How Can Real Estate Investors Profit From The Internet? The Internet is a powerful marketing tool, but just how can a real estate investor make the best use of Web pages?We've spent some time experimenting with Web sites and we've found a couple of ways that they can be useful.First. Real Estate Tax Incentives Lower Your TaxesTax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. ![]() |
home | site map |
© 2006 TIGER MEDIA |