How Many Years Before Your IP Rises Ten-fold?

Newly built house in glen waverley $1,550 for house and land in 1954.

Sold in 2014, $1,200,000

Almost 1000 times more......in 60 years :)
 
Nearly!

Our first home was on Rothery St Bellambi. It cost $56k. I just did a search & this is the second cheapest 3 bedroom home available in Bellambi today for $539k. It's on the same street as ours. The other one that's available is in the housing commission area, which ours was not.

I think it was bought in 1987.
 
Hi all

Wondering if these amounts seemed significant back in the day?

Would we look back to the current times..and say...wow - we bought this cheap!!
 
My folks bought one place for $22,500 (inc costs) in 1982 - current value approx. $450-500k. So approx. 20x in 30years. At the peak of the market in 2008 it was valued by the bank at $750k.

But timing and location is important. Their PPOR was purchased for $200k in 2003 and is worth about $1mil today. so only 5x in 20years. I guess that is where compounding impacts. A 10% increase today is equivalent to 50% increase on purchase price.

Blacky
 
Farm land where I live has gone up by 20 times in 40 years. Dirt worth $320 per hectare in 1975 is now worth $7000 per hectare.


See ya's.
 
My first house was bought in 1973 for $13,500 and it is now worth about $300k, would have kept it but a divorce got in the way :(
 
140k property in Canberra now 400k, but I don't see it getting to 1.4m anytime soon :(

The most interesting thing about that article are the comments. Look at all the haters :eek: I remember not so long ago the UK was going through negative equity from property price downturns.. for some people the glass will always be half empty..
 
It's alot easier than most think, provided enough time.

10fold growth in 20 years requires 12.2% growth pa.
10fold growth in 30 years requires only 8% growth pa.

All due to compounding effect.

Another reminder to myself to never sell, hold and grow :)
 
monalisa said:
Hi all

Wondering if these amounts seemed significant back in the day?

Would we look back to the current times..and say...wow - we bought this cheap!!
Click to expand...

of course, thats the point of it,

unless the area has had some huge jumps in values due to certain environemental or economical factors eg mining, tourism, gentrification etc. etc., if the area has plodded along at average market growth then a premium priced property will back then will always be still be premium priced now

example; an area that I know, has been steady for 30 years, my friend bought one 300k, back then this was a little expensive for an average person, this property is now worth 1.5m, he could have bought an asbsolute castle for $500k , but this was way out of the price range of the average person, this property is now worth $2.5-3.5m
 
Going through my late father's papers and found contracts for sale of Yanko Avenue Bronte property for 5,250 pounds 1953 and purchase of property Lord St, Roseville for 6,500 pounds same year. Both properties now worth over $3 million, I can picture the look of astonishment on my father's face :eek:
 
2^x=10
Therefore x=3.32

So assuming that prices double every 7 to 10 years (which I'm not convinced of for the future, but let's run with it), it means that for a property to grow tenfold, it would take between 23 and 33 years.
 
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