When you purchase property in and around Double Bay, you are buying into areas with many luxury homes that are likely to continue rising in value for the long term. These investments are often fashioned into high-end rental properties in the eastern suburbs, which provide strong rental income while capital gains slowly rise.
And according to recent statistics from CoreLogic RP Data, many people living in the area have been able to make great profits from the sale of such property.
The Pain and Gain Report for the 2014 September quarter collates home sales right across the country, and determines the proportion of these that have brought profit and loss to the vendor. Despite the consistently rising prices of real estate across the New South Wales capital, there were some heavy losses in the market.
Wyong and Botany Bay saw 6.4 per cent and 6.3 per cent of home sales respectively come through at a loss, while areas such as Ashfield and Burwood has no loss-making transactions for vendors at all.
As for real estate in Double Bay and surrounds, the Woollahra region saw only 2.9 per cent of sales make a loss. The median value of each loss was $75,000 although there was clearly some high-end losses, with the total value of these in the quarter reaching $2.92 million.
On the other end of the scale, the vast majority of sellers in the Woollahra area made a profit, with a median gain of $396,500. Even more striking is that the total profits figure for the region over these three months was just over $120 million.
And with Andrew Wilson of the Domain Group noting in the Sydney Morning Herald that Sydney prices on homes were up significantly yet again in 2014, there could be even more profits available for purchases of real estate in the Double Bay area.