The Pain and Gain Report analysed data from 106,000 real estate re-sales, and showed that tight listings, record low mortgage rates and Australia's extraordinary growth in housing values led to continued strong resale gains.
Property owners who resold after just two years pocketed a median return of $123,000, while those cashing in after more than 30 years of holding a property, achieved a median return of $712,000.
CoreLogic’s Head of Research Eliza Owen, says nationally, profit-making residential property sales have increased for four consecutive quarters, with the latest report showing profitability is at a ten year high.
"This number really does reflect the extraordinary recovery in housing values following a small downswing induced by the initial impact of COVID-19," Ms Owen said.
The typical median hold period on all resales for the quarter was 8.8 years, with a national median gross resale profit of $265,000.
Regional sellers cash in
Re-sale gains were particularly strong in the country's regional and tree change markets.
Record high rates of profitability extended to regional Victoria's entire dwelling market, where 98.7% of resales were above the purchase price.
The regional push has exploded through the pandemic, but has proven challenging for some renters, especially in popular coastal markets.
Fresh worries for lockdown renovations
According to Hipages data, those stuck at home in lockdowns have been prioritising renovations.
However, with this surge in spending in lieu of supply shortages has seen prices skyrocket.
According to the report, labour costs have gone up as a result, with builders, painters, concreters, tilers and garden maintenance workers having the biggest increase in requested jobs since July.
There has been an average 35% price increase for extension, 18% for kitchen renovations, and 15% for bathroom overhauls.
Average spend on renovations over the past year has also increased 5% to $21,000.
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
