Had you started in 1993

[spludgey]

Less than $1M equity gain in over two decades, I certainly hope that I'll do a little bit better than that!

 

[redwing]

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!

You (and some others here) would be ahead of the schedule outlined though

i.e. Starting in 1993

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.

 

[willair]

Less than $1M equity gain in over two decades, I certainly hope that I'll do a little bit better than that!

I bought my first property on Melbourne Cup Day in 1983 at 18%p&1 there was not the amount of opm floating around back then at super low rates,out the back of the Gold Coast on the side of a hill on a 45 angle slope,that no one would even get out of the agents car to walk the large property sold that one in 1998 for over 100k more,and have sold and bought many more and it took us 17 years to hit the one mil mark in june 2000,it's only a number and date what happens in between is more important..

 

[Mitch1]

Bought our first PPOR in erskinville for $200k 2 up 2 down, in 1996, paid under mkt val. As sale was in a hurry due to couple divorcing.

Sold it during slump in Sydney a few years ago for 495k, after a 50k drop, didn't want to continue losing equity because we needed all of it for next project.

Next project still hasn't got DA so could have kept it longer. Value now $650k.
Still, we did well out of it and the next investor is no doubt very happy!

 

[Tonibell]

My prents has was purchased in 1967 for $7,500 - it has just been valued at $800,000.

It was on a 30 year fixed mortgage at 2.5% - where all payments were made.

My father was still annoyed because he could have got it $500 cheaper back then - so he still thinks he overpaid.

 

[LoneWolf]

Indeed we had a good run in property prices in the last 20 years.

Now the big question would be that, do you believe that similar property cycle is going to follow for the next 20 years?

The average house in Melb today is half a mil, based on this model, the average home in Melb going to be 1M in 2024?
Yes, Some Melbourne homes are already the 1M mark, but to average it out across the board

If this cycle is applicable for the future, and that history will keep on repeating itself. Then based on this model, today, it would not really matter where you buy, whether you follow CF or CG, just buy anything and at anywhere, it will sure double in 10 years

But in fact, I know a few areas which clearly does not follow this rule of 10 years double in value

 

[INVSTOR]

I wonder how much of a chunk is taken out by stamp duty?
Interesting! I'm going to do a spreadsheet of all my properties bought to get a better idea of performance.

 

[mumbai]

I was only able to buy my first property in Australia in 2011.
But, I bought my first unit overseas in 2004 for 16K aud (at today's exchange rates) and it is currently valued at 115K.
I wish I had money to buy a property lot earlier than 2011.

 

[Chilli]

I think I can compare notes here.
Bought one in inner Bris for $380K in 2000, got an offer at 1.7M recently (but i am not yet selling).
Sold one a few years ago for 1M net, bought $150K in 2000.