Historically, holding property in Australian capital cities for 10 years or more has practically guaranteed considerable capital gains.
An important point to remember is that while time in the market is important, timing can be crucial.
According to RP Data, the average per annum changes in property values over the past 10 years are:
- Darwin – 8.5%
- Perth – 7.1%
- Melbourne – 6.2%
- Adelaide – 4.0%
- Canberra – 3.7%
- Sydney – 3.7%
- Brisbane – 3.4%
- Hobart – 2.0%
Source: RP Data Core Logic Home Value Index, September
These figures are not particularly remarkable but during the past 12 months, Sydney values have increased by 16.2%, while Melbourne has jumped up 11.7%.
Any large gains (or losses) in a short period of time are likely to be smoothed out over a longer time frame.