Median prices have often been used as a benchmark of property values. The truth is – median prices don’t tell the entire story, and the high number of new dwellings in a certain area can deceive you and skew the facts behind the median price.
Take this for example: if you were to purchase an older property worth $400,000, and the newer properties are selling for $550,000 – you may think that you made the right choice by saving hundreds of dollars. In reality, newer home values can increase the values of older properties, and this is why median prices should not be relied upon as the primary basis in purchasing. Investors are encouraged to take due diligence in planning, and to consult a certified financial planner to ensure that you make the purchase that’s right for you.
Read more about this on the Smart Property Investment website.