Had you started in 1993

redwing

redwing

This arrived as an email today and I wondered if anyone here had actually started in 1993 and where they sit and how they have done now in comparison

On the basis that suburban property doubles every ten years, and had you started 21 years ago in 1993 with your first investment property worth say $100,000 then it would have increased in value to $200,000 by 2003 and would have again doubled to $400,000 in 2013.

My approach is to give my private clients the best chance to own three during the first ten years, so let's assume you purchased a second in 1999 for say $160,000 and a third in 2003 for $200,000.

By then you would be in the swing of developing a profitable hobby, so you'd continue to expand your portfolio with a fourth in 2006 ($270K) a fifth in 2009 ($350K) and finally a sixth in 2013 ($400K).

Assuming all your mortgages were interest only, by today - 2014 - you would have six investment properties, each worth $400,000 i.e. a total of $2.4 million.

Against that, your borrowings would be $1.48 million, so you would be $920,000 ahead.
Click to expand...
 
Saw this one today

One House

Box Hill house soars from $149,950 to $1.6m in 21 years

IT WAS 1993. The ?baby Bombers? were on track to win the premiership, Paul Keating was Prime Minister and Jurassic Park was an instant hit.

And an unassuming three-bedroom house at 71 Thames St, Box Hill, sold for $149,950.

It?s 21 years later ? and the same weatherboard house has just sold for $1,601,000.

That?s a whopping increase of more than $1.45 million or 967 per cent, thanks to the property being in the proposed Whitehorse residential growth zone.
Click to expand...
 
redwing

Can't match that that Box Hill house, but in 1995 bought in Middle Park for $145,000, spent around $30,000 on renovation, worth around $1,200,000 at the moment.
 
redwing said:
This arrived as an email today and I wondered if anyone here had actually started in 1993 and where they sit and how they have done now in comparison
Click to expand...

Purchased my first PPOR in 1993 for $105k ........today it would be worth $400k. So the comparison in the article looks accurate. I sold it 11 years ago for $185k to purchase current ppor in 2003. Purchased for $280k and just had the bank valuation (conservatively) come back at $675k. Gotta luv property!
 
It was around this time that I purchased a unit in Bassendean (WA) for around $69k from memory, nowadays I'm guessing it would be in the $360-380k region
 
redwing said:
This arrived as an email today and I wondered if anyone here had actually started in 1993 and where they sit and how they have done now in comparison
Click to expand...

My biggest decisions in 1993 were based around which colour cordial to drink :)

Cheers

Jamie
 
The article sounds about right!
I'll just do first 3 properties as comparison
Purchased 1994 - $95,000 (sold but now worth $350,000)
Purchased 1999 - $175,000 (spent around $20,000 and lots of hard labour) valuation next week but I estimate $750,000
Purchased 2003 - $275,000 (spent about $12,000) worth about $650,000
 
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Purchased PPOR in 1994 in Melbourne's inner west for $140k. Today it's worth approx $800k....only cosmetic renovations done to it in that time.

Know someone else who purchased a single fronted Victorian in same area in 1993 for about 85k and sold it about 4 months ago for $750k.

If we could only go back to then for a single day..........
 
We purchased our first block of land in 1963.....1,050 pounds

Second block of land in 1969 $3,000

Needless to say I am very old :)


Chris
 
The old man purchased a 2 bed unit for 120k in dulwich hill in 1993 for my brother when he went to uni, brother moved out in 1995 and since then dad has had the same tenant. Probably seen some good growth in this time, might even be CF+ ;)

:D - dads face
 
sandyfeet said:
The old man purchased a 2 bed unit for 120k in dulwich hill in 1993 for my brother when he went to uni, brother moved out in 1995 and since then dad has had the same tenant. Probably seen some good growth in this time, might even be CF+ ;)

:D - dads face
Click to expand...

This, if a typical one, would be around $550-$650k now.
 
bought my first property in 1990 for$70k, probably around $500k now, great little place. probably bought and sold 50-100 properties since then. Whilst most I regret selling, there are also some I celebrate selling. biggest lesson I could give is forget all the noise and forecasts, accumulate well located property and assets. I am no longer interested in trading like mad. these days I buy to keep. one thing you cant change is the ticking of the clock.

LOL... one that got away: had a great place I bought in 98 for $350k,I sold approx. 2002 for $380k, was resold with minimal makeover in 2008 for$1.55m

I sold some h&L packages in karrtha, some would recall them either on here or the other site that remains nameless, $220k. I sold out at $3-400k ish, they went on to hit $1m with rent $2k per week (now more like $1200pw). I am now looking to buy back in again... so why did I bother selling? :confused:
 
My Dad pushed my elder brother and sister into buying units in Rivervale for 42,45 and 48K in the mid 90s, followed by low 100k purchases in Subiaco/Wembley. As a child I remember my sister whingeing about how the extra $15pw to cover the mortgage was such a pain at the time.
 
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