Property never goes down in value | Common Investor Mistakes [Video]

The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.

In this weekly series of short videos, we discuss the common mistakes we’ve seen investors make.

Today we discuss if investors should invest on the basis that properties NEVER go down in value.

I know some property spruikers entice naïve investors to buy properties with the claim that property values always keep rising – but is that correct?

Watch as we discuss:

Each quarter Core Logic releases its Pain and Gain Report giving insights into which type of properties are resold at a profit or loss.

While the vast majority (89.8%) of properties sold in Australia deliver their owners a profit, some trends have emerged:

  • Around 10% of all properties sold sell at a gross loss for their owners. Untitled Design 2
  • The longer you hold the property the less likely this is to occur
  • Apartments were more likely to sell at a loss than houses. This is most likely due to the high premium many investors paid for their new unit.
  • CoreLogic reports that in the last quarter Melbourne units were 10 times more likely to re-sell at a loss than houses. This was much the same in Brisbane (9 times) and Canberra (8 times). On the other hand, a greater proportion of units re-sold for a profit than houses Sydney and Hobart over the last quarter.
  • More regional properties sell at a loss than those in our capital cities.

Currently locations where there is a high supply of new apartment projects are likely to suffer with more properties selling at a loss due to the significant oversupply.

Places like the Brisbane CBD and Fortitude Valley or Paramatta, Harris Park, Homebush Zetland, Ryde in Sydney. Desirable Location 300x200

I would also avoid locations where the residents are more likely to suffer from mortgage stress.

These tend to be outer suburbs where young families have stretched their finances.

And as always, I would steer clear of the many property spruikers disguised as investment advisers but who are actually working as project marketers for developers.

They lure naïve investors in with their get rich quick schemes – but that’s not how property works.

As Warren Buffet said: “Wealth is the transfer of money from the impatient to the patient.”



Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Michael Yardney


Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit

'Property never goes down in value | Common Investor Mistakes [Video]' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


Copyright © Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts