What is the actual CG on your IPs?

What is the approximate CG achieved over your property portfolio?

  • CG <-5%

    Votes: 2 3.5%

  • CG -5% to 0%

    Votes: 2 3.5%

  • CG 0% to 5%

    Votes: 4 7.0%

  • CG 5% to 10%

    Votes: 8 14.0%

  • CG 10% to 15%

    Votes: 12 21.1%

  • CG 15% to 20%

    Votes: 2 3.5%

  • CG >20%

    Votes: 27 47.4%
  • Total voters
    57
  • Poll closed .
lowb

lowb

The property market is really a bit confusing sometimes -there is such a large difference between CGs in different cities (like up to 90%/yr in Perth and -0.5%/yr in Sydney), and even between different suburbs in the same city.

There have also been sightings of bears in the eastern states while the bull in perth is still out in the loose.

What sort of actual CG have you achieved (as a % per year). Wonder if reno's should be taken into account, but just give us a general idea!

Do you think you have achieved better CG than the average mum-and-dad investor?

Any other thoughts?
 
This is not resi property.
It is black soil farm land. I'm sure it would be interesting to some. I put 5% to 10%, even though it is about 10%.

Original family block.
Bought 1935 for $27 per hectare.
today worth .....$5000 per hectare.
compound growth of 7.63%

Next purchase.
Bought 1966 for $80 per hectare.
today worth .....$5000 per hectare.
compound growth of 10.89%

Next purchase.
Bought 1998 for $2000 per hectare.
today worth .....$5000 per hectare.
compound growth of 12.14%.

All this land would be valued at about these figures not including improvments like houses, sheds, grain silos, whatever. Like resi property, it has seen big jumps in value in short periods, latest jump in 03 to 05, with long flat periods in between.

This land was purchased in the normal growth of a family farm. The original block supported 5 families. Todays blocks, are much bigger, and supports 2 families.

See ya's.
 
Very open ended Lowb.

Do you include properties bought in 1999, before the boom? Or just bouthin the last 2 years?

Otherwise it's apples vs oranges.
 
[/quote]
Just a question from the sideline,i'm not too good at math's but does
anyone know the way you work out the C/G an simple example would
be we purchased one inner city property in Brisbane in 1990 for 79k
the ucv on the property back then was 57k,i had this property valued
last year ucv now is 427k it rents for $400.00 4 bedroom house on the side of a hill,
we have several other's that are in that price range,and that's only land value not the house..good luckwillair..
 
G'day Willair,

Although I don't trust UCV's too much, this is the only data we have to work with:-
Willair said:
the ucv on the property back then was 57k,i had this property valued last year - ucv now is 427k
Click to expand...
Based on the UCV gains, this shows a 13% increase year-on-year.

What WAS the valuation last year?

Regards,
 
Les said:
G'day Willair,

Although I don't trust UCV's too much, this is the only data we have to work with:-

Based on the UCV gains, this shows a 13% increase year-on-year.

What WAS the valuation last year?

Regards,
Click to expand...
Thank's Les,that valuation was effective from 1st july last year that's
what's on the BCC rate account's which i have too pay this week.
I paid someone to value everthing we still have and his values on the properties
came in higher than the rate account but that's the way
it always work's out..
But if 13% is what THE C/G is on that property alone then that's made my day,
and the more i read about the severe downturn???this decade in property values,
the more i understand the the strengths that come with long term property investing.....good luck willair...

`
 
G'day Willair,
I paid someone to value everthing we still have and his values on the properties came in higher than the rate account but that's the way it always work's out..
Click to expand...
Hmm - yeah, that's pretty normal - I mean, they ARE dealing in UCV (Unimproved Capital Value - or Land Value). But, from my own experiences, I distrust UCV's as being WAY out of whack. Get this ....

My own PPOR in Logan had a UCV for SEVERAL years of $23k - then, in one year, it jumped to $96k (it's finally near to realistic) but it took a while.

Then again, another property has a UCV of $350k (I believe current land value in that area should be ~$600k). You see what I mean?

Still, I'm happy for you Willair (if only I had more faith in UCV's) :D Maybe you've done EVEN BETTER than that,

Regards,
 
G'day Willair,

Thanks to you, I figured I should check on my own IP's. You have made me a happy man too (always thought I was, but this confirms it :D )

Overall, all of mine have increased in value by at least 14% pa

Of course, the downside might be that I started buying in 1999 - so there might be a few years of "go nowhere" yet to come (which would reduce this lovely figure somewhat). In the end, it is probably important to work these things out in similar times of a cycle. In YOUR case this probably works (1990 was pretty much rock bottom, as is now).

But, for me, I bought at the beginning of the boom in Bne - so probably should hold off any comparisons until the beginning of the NEXT boom.

Regards,
 
geoffw said:
Very open ended Lowb.

Do you include properties bought in 1999, before the boom? Or just bouthin the last 2 years?

Otherwise it's apples vs oranges.
Click to expand...

Hi, I'm not actually sure how the question should be asked as well. How should the question have been phrased?

If we just include all properties then we would also see the effect of our timing the market but then that could be influenced by other things like location, renovations, and so on...

Anyways its good news- So far, the results of the poll are impressive -most of the time I hear "average of 10% p.a." but it seems the somersoft average is better than that. :)
 
If you look at the property price ONLY, then it's about 7-10% on average.

If you take into account the effect of gearing, easily 20%+. Once you get to a certain point of refinancing, though, you don't actually put in any more cash (except to cover -ve cashflow) so it's very hard to calculate.

I don't really think of my returns as such. I just run projections to see what my net assets and expected income will be for the various scenarios. Remember returns by themselves mean nothing: in the end it's income that feeds you and net assets that generate that income.
Alex
 
hi lowb
not sure how you do a cross the board cg on resi and comm.
but resi is under the 20% per annum but one comm has double in real value in 5 years with rental up 75% over the 5 years and tennant wants another 5 x 5 on the same terms.
across the different properties its over 20% per annum.
but I uses the equity to reinvest so the loan base is always neutral so on a balance sheet the cg per year is always 0 so its a bit difficult to put in your poll.
which is similar to alex version I just don't use the income I use the loans
 
Some unbelievable growth figures here.

I was very interested in the results of this poll however, given the current figures, I find it hard to believe that almost half the growth achieved by somersoftiens is over 20%...!!!

I'm guessing that the people with big gains are putting in the results, and those with none or very small gains aren't bothering. Looks like all the Perthites have put in their results.

20% compound growth means that a property will double in way less than 4 years! The way my rural farming land has performed for 40 years, at 10% compound, I think I will just stick with buying farm land. Why should I bother with the hastles of resi, and the risks of shares?

If anyone wants to know how to calculate compound growth, just google 'compound growth'. Lots of stuff somes up, and this is the calculator I used,...

http://www.investopedia.com/calculator/CAGR.aspx

See ya's.


ps.....Hmm. lowb's original question didn't actually say compound growth did it? I just assumed it would be compound growth. Have others used compound growth in their figures, because I did.
 
topcropper said:
Some unbelievable growth figures here.

I was very interested in the results of this poll however, given the current figures, I find it hard to believe that almost half the growth achieved by somersoftiens is over 20%...!!!
Click to expand...

I'd guess that people read the question What is the actual CG on your IPs? before reading the post What sort of actual CG have you achieved (as a % per year).
 
In that case my CG compunded is 33.89% for my 2 Cairns units. Gee! That's looking better than I thought. Tis wonderful what a different statistic will yield, eh!:)
 
What sorts of differences would contribute to having a 10% CG to a >25% CG? It is such a difference...

Ps: are we talking CG as in growth in value of the IPs irrespective of LVR?
 
Using TopCroppers calculator (thanks for that)

I get (near as possible and 1 period being 1 year):

IP #4 41.38%
1 period

IP #3 30.36%
3 periods

IP #2 18.34%
7 periods

IP #1 19.25%
7 periods
 
Using the same calc and 1 year to a period we get

1 @ 185.71% 1 period

3 @ 152.00% 1 period

1 @ 41.93% 2 period

1 @ 38.96% 2 period


These are from Val's we got a couple of week's ago.

Gotta be happy with that :)

BB
 
Would you be able to tell us how a CG of 185% is possible in QLD? Do tell!

It's shocking mate, but congratulations! :)
 
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