Why a New Home is a Great Long Term Investment2 Aug 2017
If you are looking for a first home or another home, one of our house and land packages in the Perth area is not only a great lifestyle choice, but a great long term investment. Here’s why.
For an overwhelming majority of Australian households, their home is the most important and valuable asset they will own. A home is like two investments in one. It is both an investment vehicle and a tangible product that provides you with consumption services and enhances your lifestyle.
Residential housing is the most common form of collateral for mortgages and small business loans in Australia. It is also a large part of any financial institution’s portfolio. Changes in housing prices affect both personal financial situations and the health of financial institutions.
Inflation and Housing Prices
If you want to look at a great report that will give you all of the details, go to the RBA’s website and find an article called “Long-run Trends in Housing Price Growth.” The long version of what we are telling you is there. It has plenty of graphs and a bunch of numbers that you will love if you are an accountant or an economist.
The short version: housing prices grow faster than economic inflation. If inflation is growing 3% per year and your home value is growing 5% a year, you are gaining 2% per year on your home. Housing prices often increase 7-10% per year during better economic times.
Why Our Land Estates in Perth Suburbs Outperform the Mainstream
At Origin Projects, we choose our land carefully. We only buy and develop in areas where we can buy low enough to offer our customers a great bargain. That land must also be in an area that we know will remain a “good neighbourhood” and will produce great capital growth due to being close to amenities and infrastructure.
To learn more about our house and land packages in the Perth area, call us today: (08) 6500 4488.