By John Van Klaveren
LOCAL property owners are less likely to make a loss on resale than in Gold Coast, according to a new industry report.
RP Data’s Pain and Gain report ranked the Barwon region in the top 10 for resale value, while Gold Coast topped the list for losses with 37 per cent of properties selling for less than original purchase price.
Only 6.3 per cent of units resold in the Barwon region recorded a gross loss, the report revealed.
The national gross loss average for all home resales in the first quarter of 2013 was 12.7 per cent.
“Lifestyle regions showed the largest proportion of loss making resales,” the report said.
“Regional areas associated with the resources sector recorded very low rates of loss making resales.”
The report said almost a third of all resales doubled the original purchase price.
Properties purchased before the global financial crisis were more likely to make a profit upon resale, the report found.
“For homes purchased after January 2008 the propensity to make a loss on the sale climbs substantially. Of those, 25 per cent recorded a loss.”
Properties held for an average of less than five years were more likely to make a loss. Properties held for almost 10 years recorded a profit.
On average, properties took just over 15 years to double their original purchase prices, the report said.
