As you can see from the data below, property has about doubled in value every 10 years.  On average property has delivered a 9.5% growth rate per year over the last 50 years. When you include the rental return that total return is around 14% pa on average. That is very strong.

Here is an interesting fact.  Assume you are now 60 years old and about to retire. If you had started property investing in your mid 20s and purchased a 4 investment properties, (that being 1 investment property every 10 years)  you would have made in excess of $1 450 000 dollars – just in capital growth.  Imagine if you had purchased them all in the first 15 years? The profits would be in excess of $2 million!

The key thing to note when you are getting started in property investment is that history has shown us property will grow in value over time.  Being successful is not so much a matter of “timing of the market” but “time in the market”.  This is why it is important to get started as soon as you can.

1970 1980 1990 2000 2010
Adelaide n/a 36,600 99,000 1,32,000 4,05,000
Brisbane 8,500 34,500 1,08,000 1,85,000 4,55,000
Canberra n/a 39,700 1,19,000 1,75,000 5,49,647
Darwin n/a n/a 95,500 1,90,400 5,76,125
Hobart n/a n/a 89,000 1,29,500 3,18,119
Melbourne 11,800 40,800 1,40,000 2,41,000 5,49,980
Perth 14,600 40,000 1,01,000 1,71,800 5,19,526
Sydney 18,500 64,800 1,85,000 3,08,000 6,09,500
City Since 1970 Since 1980 Since 1990 Since 2000
Adelaide    n/a   8.3 %   6.9 % 15.4%
Brisbane 11.2%   9.7 %   8.1 % 13.6%
Canberra    n/a   9.1 %   7.5 % 15.0%
Darwin    n/a   6.3 %   7.4 %   8 %
Hobart    n/a    n/a   8 % 15.0%
Melbourne 10.3%   9.1 %   6.6 %   8.5 %
Perth   9.3 %   9.6 %   7.5 % 11.6%
Sydney   9.8 %   8.5 %   6.8 %   9.9 %