Property increased 150 times in 30 years

[RightValue]

I went to inspect a property in Melbourne today in Essendon North on a busy Arterial road.

The property, a 1000sqm site with a pull down basic 2 bedroom weatherboard/fibro house on it had recentlly sold at Auction for $1.5m.

Talking to the owner, she said she paid $10k for it 30 years ago!

Since then things have changed and the council now encourages multi unit development on that road. The site next door is having 6 townhouses constructed on it.

Not a bad return at all, leaves the old .. property doubles every 7 to 10 years statistic looking a bit sick.

The sorry thing is, that 30 years ago was my gap year and I was earning more than $10kpa working in a carpark. If only huh?

Just thought I would share this one with ya all.

cheers

RightValue

 

[jingo]

The sorry thing is, that 30 years ago was my gap year and I was earning more than $10kpa working in a carpark. If only huh?

Just thought I would share this one with ya all.

cheers

RightValue

Could this indicate that Residential Property is well overvalued today?

 

[BuildingBlocks]

Could this indicate that Residential Property is well overvalued today?

Or that it was undervalued 30 years ago?

 

[Peter Parker]

I went to inspect a property in Melbourne today in Essendon North on a busy Arterial road.

The property, a 1000sqm site with a pull down basic 2 bedroom weatherboard/fibro house on it had recentlly sold at Auction for $1.5m.

Talking to the owner, she said she paid $10k for it 30 years ago!

I find that hard to believe, unless it was a token price - eg due to a sale within a family.

A suburban house in a capital city 30 years ago would have cost maybe $50k.

Maybe the $10k was a deposit.

 

[Propertunity]

leaves the old .. property doubles every 7 to 10 years statistic looking a bit sick.

I believe that it says: "on average....property doubles every 7-10 years".

So this will include properties that go up only 50% in 10 years as well as ones like this that do exceptionally well.

But thanks for sharing

 

[softmonkey]

The other side of the coin is almost as stunning - one family property in a major regional town was $160k 26 years ago, would be lucky to get $450k now. Barely even exceeding CPI, that one.

 

[Wunderbar]

The other side of the coin is almost as stunning - one family property in a major regional town was $160k 26 years ago, would be lucky to get $450k now. Barely even exceeding CPI, that one.

I don't buy in those kind of areas.

 

[evand]

Thats too cheap. The price of a standard 3br house on 500m around that time in Sydney's western suburbs was about $30k - $40k.

In the late 80s it reached app. $60k.

I think she saying what she paid for it rather than what it was worth.

 

[Vesuprop]

I think she saying what she paid for it rather than what it was worth.

Isn't that what good investors do?