If there’s any doubt in your mind about the value of property as a creator of wealth, new research from CoreLogic RP Data has found that you can’t go past real estate when looking for a profitable long-term investment.
Researchers used an automated valuation process to obtain current real estate valuation estimates, and from there calculated equity levels for homes around the country.
Property is now worth double the debt
The results clearly showed that in Australia, the average property is now worth almost double the amount of debt against it. This means home owners in either city or regional areas with a mortgage have accumulated 48.4% equity in their properties on average, which is the equivalent of $242,642.
New South Wales and Victoria have the highest average level of home equity at 56.6% and 49.3% respectively. The ACT came next at 42.8%, Queensland at 39.9% and South Australia at 39.4%.
Even the lowest equity level, in Tasmania, was still an impressive 32.7%, worth $95,427.
The research confirms what many real estate investors have long believed, that real estate is a solid basis for any wealth creation strategy.
To find out more about your property’s potential, give your mortgage broker a call. They can help you work out how to access and use the equity to expand your portfolio or pursue your financial goals.