Resi IP portfolio & avg compound growth?

[agent007]

For those who have a resi investment portfolio for +10 years- Was wondering what has being the average compound capital growth across the entire portfolio?

Thanks!

 

[jingo]

Bit hard to build up a definitive picture - but approximately 10.94% p/a across the whole portfolio. First property was purchased in 1997 (PPOR).

 

[agent007]

Bit hard to build up a definitive picture - but approximately 10.94% p/a across the whole portfolio. First property was purchased in 1997 (PPOR).

At 10.94% compound growth for 13 years (since 1997) means that a $300,000 IP should be now worth approx. $1.15M. That's prety impressive.
Congrats!

 

[jingo]

At 10.94% compound growth for 13 years (since 1997) means that a $300,000 IP should be now worth approx. $1.15M. That's prety impressive.
Congrats!

Hi agent007,

In 1997 $300,000 would probably have bought a double fronted period home in a suburb within 10 kms of the CBD. These would easily be worth $1.15M now and above.


Regards Jason.

 

[Jebb]

Hah! And properties going for $300k now would've been around the $60k mark in '97.

 

[agent007]

Hi agent007,

In 1997 $300,000 would probably have bought a double fronted period home in a suburb within 10 kms of the CBD. These would easily be worth $1.15M now and above.


Regards Jason.

Agree. We just need to wait for history to repeat itself to believers and non-believers

 

[Dazz]

what has being the average compound capital growth across the entire portfolio?

About 14%.


Better than a poke in the eye with a blunt stick, but as with all investments, one must always ask "compared to what ??" before you pat yourself on the back.


Our total equity gain from those houses over a lengthy time period, is less than half the gain derived from just one of our industrial investments in far less years, gleaned off no work and no expense.


The CAGR measure therefore, to me, is totally irrelevant.

 

[gooram]

Our total equity gain from those 5 houses over that lengthy time period, is less than half the gain derived from just one of our industrial investments in less than 4 years, gleaned off no work and no expense.


The CAGR measure therefore, to me, is totally irrelevant.

That's pretty interesting, considering those growth figures above are really good for resi IPs.

Is this due to the value of the industrial being greater than your entire resi portfolio or is there more to it than that?

I'd be interested to hear the details of the industrial IP if you care to share... i.e. location, ballpark purchase price, deposit required, yield etc.

Cheers

 

[agent007]

That's pretty interesting, considering those growth figures above are really good for resi IPs.

Is this due to the value of the industrial being greater than your entire resi portfolio or is there more to it than that?

I'd be interested to hear the details of the industrial IP if you care to share... i.e. location, ballpark purchase price, deposit required, yield etc.

Cheers

The answer to your question is in an article on the API. I forgot the issue date though.

 

[gooram]

The answer to your question is in an article on the API. I forgot the issue date though.

Oh I see, a celebrity eh!

I don't have access to past issues of API, maybe there's a thread on here about it already?