Fact or fiction: all investment properties double in value in seven years?

When it comes to investment myths, one of the main ones we hear is that all investment properties double in value every seven to 10 years. This is simply untrue. Although in some instances it may play out for some investors, it is by no means a rule on which you should base your investment decisions. RBA chairman, Glenn Stevens, says that ‘property today won’t deliver the same capital growth results as was ‘the expectation’ of most Australians over the past 40 years.’

There are a number of factors to consider when working out how long it takes property prices to double, and the seven to 10 year rule isn’t accurate.

The big factors are those such as supply and demand, interest rates, employment, affordability and consumer confidence. Other factors such as population growth and council commitments to development can also have a strong impact on how long it take property prices to double.

The type of property and its surrounding amenities and infrastructure can affect the supply and demand factor for a particular property market.

The risk of believing these property investing myths and making decisions based on them is that they can affect your chances and ability to build and expand your property portfolio.

The good news is that property in Australia is growing in value exponentially, and for many investors they may be lucky enough to double the value of their investment in 7-10 years. However, this isn’t a sure thing. The important thing is to do your research and get advice to find the right place to invest with good capital growth potential. Contact us to find the right property investment for you.