Profits can be found in more than just the expensive parts of Melbourne: Robert Larocca

The latest CoreLogic RP Data Pain and Gain Report  compares the sale price with purchase price for all homes sold in the most recent quarter and for which there is comprehensive data available.

Note: The report does not cover developer sales.

The central message of the Pain & Gain Report is  that owners are more likely to make a profit if they hold the property for a reasonable length of time, especially when the upfront impost of stamp duty and other transaction costs are taken into account.

For example, nationally, 3.3% of sellers made a 100% profit selling within one year of buying and almost passed this mark by half after 10 years of ownership.

In the September quarter last year, 6.5% of sellers in Melbourne made a loss in nominal terms. This was a slight improvement on the 6.6% in the June quarter and a substantial improvement on the 7.4% a year ago.

On a more local basis there are two ways of looking at the data; the proportion of sellers that made a profit and the gross profit made. Obviously the total profit made was higher in the more expensive municipalities. For example the highest profit was recorded in Boroondara at $232 million. By comparison the total profit in Brimbank was $66 million.

The other way of assessing the data looks at the proportion of owners who made a profit. Of municipalities wholly within the metropolitan area Knox topped the list with 98.6%. It was followed by Monash on 97.4%, Casey with 96.6% and both Glen Eira and Whitehorse with 96.4%.

Interestingly this demonstrates that through medium to long-term ownership a profit can be found in more than just the most expensive parts of Melbourne.

Key facts

• 35.7% of sellers made a 100% or higher profit
  
  
• Sellers in Boroondara made the highest total profit of $232 million
  
  
• 98.6% of sellers in Knox made a profit