Jordan Springs | Capital Growth
Jordan Springs is a brand new suburb, in fact, it only recently received a postcode! This means that historical data is mostly non-existent. For this reason, I have commented on the Capital Growth seen in the Jordan Springs Case Studies and compared this to its surrounding suburbs!
Jordan Springs Capital Growth Breakdown
The following is a breakdown of the Capital Growth experienced by the clients of mine who have purchased in Jordan Springs. It is only a small sample size so it shouldn’t be used as Gospel, but it is actual data from people who have actually purchased properties in Jordan Springs.
|Weekly Rent||Sell Price||Months Owned||Annual Capital Growth|
|#1||$ 435,000.00||$ 495.00||$ 495,000.00||16||10.3%|
|#2||$ 439,000.00||$ 510.00||$ 500,000.00||11||15.2%|
|#3||$ 435,000.00||$ 470.00||$ 495,000.00||16||10.3%|
|#4||$ 435,000.00||$ 520.00||$ 495,000.00||17||9.7%|
|#5||$ 485,000.00||$ 540.00||$ 555,000.00||16||10.8%|
The average capital growth in the case studies I have given is 11.3%. This means that if a property cost $450,000 it increased by $50,850 in the first year. I should point out that none of these properties have actually been sold, however I have taken the capital growth from the lowest end of the estimated sell price, you can see this further in the case studies.
Here is some data from Colliers International and RP Data for the surrounding suburbs…
|Suburb||Median Price Change p.a.||Rental Return p.a.||Property Return p.a.|
The Median Price Change per annum indicates that there was a Capital Growth in the surrounding suburbs of 2.3% on average. This is clearly well below the average of the case studies I have given. I would suggest the following reasons for the difference…
- The clients didn’t purchase through the Lend Lease office which meant they were able to get some discounts on the purchase price.
- All of the case studies were house and land packages. In this case it is quite possible that the land plus construction cost $439,000 but the end product was worth $495,00o. For this reason the second years capital growth is likely to be lower.
- The surrounding suburbs are all well-established suburbs, so they sales data is based on existing property sales, not on newly constructed houses.
- I have only used five case studies, so they aren’t comparing all the sales in a suburb. They are 100% accurate, but only a small sample of the entire suburb. Unfortunately, Jordan Springs is so new there is no data yet to compare it to. It is possible that the whole suburb has performed like this,but we can’t know until the data is available and released.
All in all, I’m very happy that my clients invested here because they have done so well. Will this be as successful in the coming year? My crystal ball is broken so I don’t know! It is up to you to do some research for yourself and decide if Jordan Springs is the right area for you to invest in!
Article by James Parnwell
If you would like some further information on anything related to Investment Property or Investment Finance please click contact us
One of our team of experienced Investment Property coaches or Investment Finance Mortgage Brokers will be happy to reply to you with some specific and helpful advice…
Powered by Facebook Comments