is this real?

As you all know; I'm always pro-property.

Well, how's this kiddies;

Last year (about July) when we bought the workshop business, we had to get our whole financial position re-evaluated. The Banks came in and got everything valued, financial statements - the whole deal. :rolleyes:

Two of the valuations at that time were:

PPoR - $650k
Vacant Land - $330k (across the road from PPoR)

Total value of both = $980k, based on recent comparables.

So, fast forward to last week:

PPoR - sold for $850k
Block of land right next door to ours sold for $450k last week.

Therefore, our block is now worth approx $450k

Total value of both, based on recent comparable sales = $1.3mill.

A cap growth of $320k in 12 months. Call it $300k just in case :D

For those who struggle to see the benefits of the compound effects of property investment....
 
Sweet Bayview :) good work!

I also got a nice reminder yesterday myself,

bought in Millner Nov 2003 for $132k, valued yesterday $415k!

Rent has gone from $200pw to $380pw, surely it must stop in Darwin for a while now,
 
Nice going Bayview! So what did you do to celebrate?

WinstonWolfe, I got about $2.86 million if that rate were to continue for another 9 years :rolleyes:
 
Not that it's important nor means anything, but you're both wrong :p

It went from (roughly) 1mil to (roughly) 1.3mil, that's 30%, so

T=-1 1mil
T=0 1.3mil
T=1 1.69mil
T=2 2.197mil
T=3 2.856mil
T=4 3.712mil
T=5 4.826mil
T=6 6.274mil
T=7 8.157mil
T=8 10.604mil
T=9 13.785mil :D

(Numbers truncated)

Edit and more importantly: Oh and very nice to you, Bayview. Whats the plan from here?
 
Whoops, thanks dtraeger, the 30% gain was over 12 months, I did it over 3 years.

And don't give me "never mind" ww, you can keep comments like that to yourself.

Anyway, I don't see any need for the patronization. Bayview never said he was expecting Australia to continue booming for the next nine years.
 
Whoops, the 30% gain was over 12 months, I did it over 3 years. And don't give me "never mind", you can keep comments like that to yourself.

Anyway, I don't see any need for the patronization.

sorry Vin....I thought you were rolling eyes at moi............friends?


Bayview never said he was expecting Australia to continue booming for the next nine years.

I like BV. He's got 8alls for buying the workshop, and he is a free marketeer.
We just disagree a little on what might happen with future compound growth. nothing terminal from my viewpoint.
 
Well...I got $16,534,794.65

PV = -980,000
FV = 1,300,000
n = 1
i = 32.65306% (assuming one compounding period)

then...

PV = -1,300,000
n = 9
i = 32.65306%
FV = 16,534,794.65

:cool:

By the way BayView...nice going!

Boods:)
 
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I like BV. He's got 8alls for buying the workshop, and he is a free marketeer.
We just disagree a little on what might happen with future compound growth. nothing terminal from my viewpoint.

I probably should have been a bit clearer on the compound part of the cap growth WW.

My mind was in gear but the typing wasn't.

Whilst our result on these two properties was terrific, I was actually referring to the overall growth our our propererties since beginning.

If someone had have told me 10 years ago that we would make $300k cap growth in one year I would have been hopeful, but never really believed it.

Such is the mindset of us when we are starting out with little on the board.

But, as the footprint increases, so does the ability to gain more growth. Not so much in percentage terms, but in dollar terms.

The only reason why we were able to enjoy such growth at all is because we kept on increasing our footprint, which allows us to buy more, which allows us to increase our footprint and so on.

Sorta like your Warren Buffets, where they can increase their wealth by $1billion in a year. They have such a big footprint already, it makes it easier to generate such volumes more quickly.

The D&G'ers will chime in now with "oh yes; but look at how much you can lose at his level too!"

You are right of course; I don't expect this level of growth indefinitely. I have experienced a few years of virtually zero growth on some of ours.

I guess what I'm trying to say is that even if you are starting small, if you keep on going, keep on accumulating as best you can, you hit a pint where the curve can turn sharply upwards.
 
If someone had have told me 10 years ago that we would make $300k cap growth in one year I would have been hopeful, but never really believed it.


The D&G'ers will chime in now with "oh yes; but look at how much you can lose at his level too!"
Lol. Glass half full scenario. I'd prefer to focus on the positive as well.

Well done Marc, and the effort required was minimal. You just had the nouse to 'do it'

Regards
Marty
 
Lol. Glass half full scenario. I'd prefer to focus on the positive as well.

Well done Marc, and the effort required was minimal. You just had the nouse to 'do it'

Regards
Marty

And the best part is that this occurs whilst one is asleep, awake, breathing or not :eek:

Well done Marc :)
 
beats working for the money at in a mundane job at $50k a year. leaves you free to actually work at what you enjoy.

congrats!!
 
I probably should have been a bit clearer on the compound part of the cap growth WW.

My mind was in gear but the typing wasn't.

Whilst our result on these two properties was terrific, I was actually referring to the overall growth our our propererties since beginning.

If someone had have told me 10 years ago that we would make $300k cap growth in one year I would have been hopeful, but never really believed it.

Such is the mindset of us when we are starting out with little on the board.

But, as the footprint increases, so does the ability to gain more growth. Not so much in percentage terms, but in dollar terms.

The only reason why we were able to enjoy such growth at all is because we kept on increasing our footprint, which allows us to buy more, which allows us to increase our footprint and so on.

Sorta like your Warren Buffets, where they can increase their wealth by $1billion in a year. They have such a big footprint already, it makes it easier to generate such volumes more quickly.

The D&G'ers will chime in now with "oh yes; but look at how much you can lose at his level too!"

You are right of course; I don't expect this level of growth indefinitely. I have experienced a few years of virtually zero growth on some of ours.

I guess what I'm trying to say is that even if you are starting small, if you keep on going, keep on accumulating as best you can, you hit a pint where the curve can turn sharply upwards.

BV, apparently I have to spread it around, but this is a fantastic, encouraging post for someone who's several years behind you (as I think am). While I also recognise that past returns are no guarantee of future results, the idea that one has to start and then keep going and then momentum will build is, for want of a better word, inspiring. And proven!

Thanks.
 
BV, apparently I have to spread it around, but this is a fantastic, encouraging post for someone who's several years behind you (as I think am). While I also recognise that past returns are no guarantee of future results, the idea that one has to start and then keep going and then momentum will build is, for want of a better word, inspiring. And proven!

Thanks.

Yes, that was the point of the whole post - to encourage the ones who have only one foot on the ladder.

It all seems daunting and maybe not possible, but I tell ya; it bloody well is. And you don't need to be smart to do it.

But you need to do it.

My mind boggles sometimes; I was thinking this morning while creating the thread; "what will the result be in 10 more years? Or even 5?

I think this is an apt opportunity to quote a famous old Chinaman (Mao - or was it Chiang Kai shek?);

"A journey of a thousand miles starts with a single step".
 
A dude named Lao Tzu


"A journey of a thousand miles must begin with a single step." -
-- Lao Tzu

Certainly an apt axiom for those procrastinating........just start ;)
 
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