How Much Has Your Home's Value Increased?

When it comes to investing in a property, many of us have heard that it's a solid long-term investment. Interestingly, countless Aussie homeowners have seen their property's value increase fivefold over the span of a typical 30-year mortgage.

Ask any seasoned homeowner about their original purchase price, and they're likely to reveal a figure that seems shockingly low compared to today’s values. It's a common reflection for Australians, who often look back with relief and amazement at how much their property has appreciated.

This trend of rising property values isn't a recent development.

A Proven Track Record of Growth

Here’s a fascinating statistic: over the past century, residential property values in Australia have averaged an annual increase of 10.9%. While there are occasional dips and periods of stagnation, the overarching trend has been upward.

In dollar terms, this growth can be staggering. Take Sydney as an example. In mid-1992, the median house price was $221,770. Fast forward to 2022, and the median value soared to $1,124,421. As of today, it stands at $1,473,038.

This pattern of substantial growth is evident across all our major cities.

How Much Has Your Home’s Value Increased Since Your Purchase?

What about more recent buyers? How has the value of homes purchased in the last few years changed?

CoreLogic’s research provides a snapshot of how national property values have evolved since the year of purchase, starting with the mid-90s. The longer you've owned your property, the greater the potential increase in value.

For instance, properties bought around 1995 could now be worth more than five times their original price, reflecting a 437% increase. Homes purchased in 2005 may have seen a 148% rise in value, while those bought in 2020 might have appreciated by 34%. Even properties purchased last year could have already experienced a 4% increase.

Here’s a quick overview of value increases by purchase year:

• 1995: 437%
• 2000: 308%
• 2005: 148%
• 2010: 94%
• 2015: 57%
• 2020: 34%
• 2023: 4%

Source: CoreLogic article. Direct link to graph here.

Why a Rising Property Value Matters

An increase in your home's value isn’t just about having bragging rights at your next social gathering. It’s a significant indicator of household wealth in Australia.

A growing property value can open doors to refinancing options, allowing you to secure a better home loan rate, or leverage the equity to invest in additional properties or achieve personal goals like funding education.

Start Your Property Journey with Osinski Finance

The key takeaway is that when you invest in property, whether as a first-time buyer or someone looking to upgrade, it's important to consider the future. Over time, today's purchase price may start to look like a real bargain in the future. Don’t let the fears hold you back, you might be thankful for your decision today.

Explore Osinski Finance, we can assist you through your property journey!

Contact us today to find the home loan that suits your needs or to explore how you can unlock the equity in your current property.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.