old timers' give the newbies some perspective

From: Nigel W


Let's get a bit nostalgic and take a trip down memory/inspiration lane...

PI investment is, they say, a great game played slow.

Whilst many are, including myself, using various techniques to add value more quickly, the reality is that it is often just the ever increasing demand over time that makes property values rise.

For the impatient investing souls, like myself, it can often be a bit frustrating trying to accelerate the growth of your net worth.

At times like these, a bit of perspective is useful. However, having been in the IP game only since early 2000 that perspective is a little difficult to come by.

How about some of the old timers regale us with stories about how they bought a property way back in the 90s, 80s, 70s or even 60s for $X and its now valued at a massive $Y. Purely and simply due to their patience (and maybe some updating reno ;^)

I'm sure there'll be a time when we'll all say "a harbourside unit for just $2M - crikey that was cheap!"

Eager ears await!
N.
 
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Reply: 1
From: Kevin Bessell


Nigel,

I just visited a holiday cottage at Wategoes Beach, Byron Bay. The owners bought it for $28k in 1965 and just sold it for $3.2M - no renovations but a lot of maintenance being on the beach.

Rgds
Kevin
 
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From: Kylie S


Just watched a rerun of hot auctions... house in East Brisbane - bought for $30K in 1982 - sold for $600K
 
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From: The Wife


I take offence at myself for thinking I'm an old timer and answering this post!

House 1987 Brand New $38K

today $145K( zero spent on it), not bad I suppose.

2001 Boarding house $385K
2001 ( bout 50ishK reno's) Over the million dollar mark value, turned it back into the grand home is used to be, by the Brisbane river, whoops, everyone was looking at the cashflow from all the rooms, didnt see what I saw, which was a beautiful old stately home. I would like to replicate this, but havent seen any around similar, if you see one, please email me first ok.

TW
~Life is a daring adventure, or nothing at all~
 
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From: Robert Forward


Not my buy but some ones I know.

Purchased a block of land in '73 for $21k, refinanced recently (as land value) for $500k in southern Sydney.

The shame is that they looked at a block that was water front and was $2k more expensive 500m up the same road, but decided to go with one back off the water. Well it would now be land value of in excess of $1m in land value.

I can also tell you of a another property that went the other way. Built in '88 cost $120k, sold in '92 $179k, resold in '97 $171k. This property was located in Brisbane, now worth about $220-230k

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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From: Simon and Julie M


Hi Nigel
Here is an other way to get excited about investing that is proactive and you don't need money to practice.
Play the game of "practicing deals".
If you want to fast track investing,open your mind to a new deal everyday.
The buzz that sustains me as a PI is the constant vigil of sourcing deals and acquiring strategies to proceed and hold them together.
Investing in real estate is as dumb as dirt as long as it is the "dirt" you are investing in and not the improvements.
Dirt = Cap Growth (if that piece of dirt happens to be in the right place)
Improvements = cashflow to sustain the investment as vehicle for Cap Growth.

regards
Simon
 
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From: The Wife


Simon is ever so correct, I would have brought the boarding house regardless of its unpolished beauty, it was the dirt it was sitting on that had the most potential, and it was the perceived ugliness of the house that kept other buyers away.

TW
~Life is a daring adventure, or nothing at all~
 
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From: GoAnna !


My first ever inspiration was one of my parents properties. In Canterbury Melbourne (before it was fashionable)

Bought in 1971 for 13K
over the years spend 10K on renovation
Sold at Auction for 332K in 1988

If I ever duplicate that I will be a happy woman.

GoAnna !
"Obstacles are those frightful things you see when you take your eyes off your goal."
-Henry Ford
 
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From: E L


This is a slight variation on the original thread posted. I don't have any great stories to tell, but ask me again in 10 years time.
My father in law wanted to purchase a small piece of ocean front land on the Sunshine Coast in Qld for approx 17pounds back in 1940. I think that equates to about $800 in today's dollars.
His father wouldn't guarantee the loan with the bank because the land had a natural spring on it. He thought it would never be worth much. So the opportunity passed.....
Sixty years on, my mother-in-law buys the roof top unit in the apartment block on the small piece of land her husband was going to buy in 1940. She pays 800k for the unit!

Cheers
EL
 
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From: Even Steven


My next door neighbor had the opportunity about twenty years ago to buy the entire block that I live on (its a big block, must be thirty or forty houses on it)for 200 pounds. He actually put down his 20 pound deposit but couldn't sleep that night and got his deposit back the next day. He just sold his house on the block for $300K.
 
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From: Felicity W.


I don't have any specifics to share, but I just worked out yesterday that we have a net worth of over $250,000 based on growth in our home and 2 IP - and we only started investing 2.5 years ago.
Pretty damn good really for a stay at home mum with two small kids and a husband with a normal income.
Sorry for blowing my own trumpet, but I thought that was very exciting!
Keep smiling
Felicity :cool:
 
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From: Nigel W


Good on you Felicity!

and thanks to one and all for some inspiring stories
 
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