New Home Owners Gain $180,000 In Six Months
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New Home Owners Gain $180,000 In Six Months

Savers in the meantime are losing out.

By Terry Christodoulou
Thu, Oct 7, 2021Grey Clock 2 min

Homeowners who purchased property six months ago are up to $180,000 better off than if they had invested their savings elsewhere, a new analysis by Canstar reveals.

The research shows that if a Sydneysider bought a house for the median price of 1,112 671 in March with a 20% deposit of 222,534 the value of their property would have risen by 16.3% by last month. In dollar terms that equals a massive $181, 365 by last month.

The same 20% deposit invested in a six-month term deposit at the highest interest rate of the time – 0.99% — would have just earned $2203 in comparison. A stark difference.

Alternatively, if the same amount was investing in the Australian sharemarket, shares would have grown by 10.02%  — a robust difference over the savings account yet nothing when compared to the increases in property investment.

It’s not only a Sydney story either. In Melbourne where a homeowner who invested in a house with a 20% deposit of $171,819 based on the median price of $859,097 back in March would have gained a 10% rise of $85,910 by September.

In a term deposit savers would have only earned $1701 and in the sharemarket a comparatively low $17,216.

According to Canstar’s finance expert Steve Mickenbecker, it’s apples and oranges when comparing the value found in housing and term deposits.

“Housing and term deposits are chalk and cheese when it comes to investing surplus savings. Both can form part of an investment portfolio but they perform different functions,” says Mickenbecker.

Yet there are pros and cons to both forms of investment.

“Term deposits are low risk, with a government guarantee for a total up to $250,000 with any one bank, while house prices can fall,” he said.

“Housing as an investment lacks the flexibility of cash in the bank. You can’t cash in $30,000 of the house to cover living expenses, and the sale of the property can become protracted.’

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By Robyn Willis
Fri, Aug 5, 2022 2 min

When people talk about making a seachange, chances are this is the kind of property on the NSW South Coast that they have in mind.

Open for inspection for the first time this Saturday, 24 Point Street Bulli offers rare absolute beachfront, with never-to-be-built-out north facing views of the ocean. Located on the tip of Sandon Point, this two-storey property is a surfer’s dream with one of Australia’s most iconic surf breaks just beyond the back wall.

On the lower floor at street level, there are three bedrooms and two bathrooms, including a family bathroom and an ensuite in the master suite. A fourth bedroom is on the upper floor, along with the main living area, and is serviced by its own bathroom. 

While this would make a spectacular holiday home, it is well equipped for day-to-day living, with a spacious gourmet kitchen and butler’s pantry set into the articulated open plan living area on the first floor. A separate media room to the street side of the property on this level provides additional living space. 

Every aspect of this property has been considered to take in the light and views, with high ceilings internally and spacious, north facing decks on both levels to take in views of rolling waves. If the pull of the ocean is irresistible, it’s just a 100m walk to feel the sand between your toes.

The house is complemented by a Mediterranean, coastal-style garden, while the garage has room for a workshop and two car spaces.

An easy walk to Bulli village, the property is a 20 minute drive from the major hub of Wollongong and just over an hour to Sydney.

 

Open: Saturday August 6 2pm-3pm Auction: Saturday September 3 Price guide: N/A but expected to exceed $5.3m paid in March for 1 Alroy Street 

Contact: McGrath Thirroul – Vanessa Denison-Pender, 0488 443 174