With daily discussions in the media about rising living costs, a common question arises—how will these financial pressures affect real estate values?
It’s natural to assume that at some point, the market may pause. While I fully sympathize with those facing higher rents, increased living expenses, and school fees, there’s another side to the story.
Australia currently has what could be described as a nation of Lotto winners—homeowners who have accumulated significant wealth through the ultimate tax-free passive investment: their own property.
The latest CoreLogic Pain and Gain Report, released in March, sheds light on this trend. It reveals that 95% of sellers nationwide made a profit on their property in the last quarter, with the average gain sitting at a record-high $306,000—comparable to a substantial Lotto win. Conversely, just 5% of sales resulted in a loss, with an average shortfall of $45,000.
Interestingly, regional areas have a slightly higher percentage of profitable sales, while the majority of loss-making transactions are concentrated in Sydney and Melbourne apartment markets. Brisbane topped the charts, with an impressive 99.6% of property resales generating a profit, followed by Adelaide, Perth, Sydney, Melbourne, Hobart, and Canberra. Darwin had the highest incidence of loss-making sales.
So, how does this relate to family law? While separation is undoubtedly one of the most challenging experiences in life, there is a silver lining—most separating couples who sell their home today are likely to walk away with equity, allowing them to move forward financially. This is a stark contrast to markets where declining property values leave separating couples burdened with debt instead of financial security.
Given the critical role that property valuations play in family law matters, we are committed to ensuring accuracy in every assessment. This is why we take extra care in providing precise valuations during these life-changing events.
For a more detailed market update or to discuss your specific situation, feel free to reach out. While we are experiencing high demand for family law-related valuations, we are happy to schedule a consultation.