Myth Busters!

This is probably the best example I have in my property portfolio in regards to capital growth over 15 year period. I purchased my first ip in Pakenham in 1989 for $98.000-.

Property is now valued at $235,000-. We had it valued June 2000 and it came in at $115,000-. Basically there was no movement out there for 11 years. But it has nearly doubled over the past few years. (Which has happened in most places in Australia)

Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]

Development Finance Specialist

Hi All,

This one always cracks me up. [lmao]

If as an investor I were to work on the premise of ‘property doubles in value every 10 years’ then I therefore need never worry about what stage the market is at when I get into it because all I would have to do is ride out a decade and then reap the rewards… [blink]

If only it were that easy (sigh) [withstupid]

Cheers, Nobleone. [biggrin]

“Making mistakes is just another another tool for learning.”

No foundation,

Your numbers are not flawed; true if the calculation (or MY “theory” as you so eloquently put it) is correct yes Sydney house prices would be in the millions!!! The results achieved as per my examples are not common everyday occurrences, however they are not in isolation or outside the realms of possibility given the right market conditions and with enough time in which CG can accumulate. But again, I will leave it there, it’s evident you are not reading clearly (I’ve noticed this in a few of your posts).

Correct, no one has or is forcing me to read/post, however out of courtesy I addressed your comment marked to myself; perhaps it would have been best ignored, would that have been more in line with the manner in which you are accustomed being treated by others??? [blush2]

Well I’ll let it go at that; feel free to PM me (if time permits). [whistle] Best you run off and answer ALL those PMs now, after all, the Inbox only holds so many, and if you do not clear them, it will prevent new ones coming in, and you don’t a queue now do you??? [biggrin]

Cheers,

Jo

Hi Foundation,

I find that some property investors get very defensive when their strategies or beliefs are questioned. These people don’t often like being challenged because it can be difficult for them to backup their own claims or refute an opposing argument. Some also don’t like to think that the thousands of dollars they’ve spent on wealth seminars and books may have some caveats or flaws in the methodology.

If you read some of the research floating around it basically says that property prices do rise consistently in the long run. And it may well be doubling in face value during certain periods. However, it does stress that in terms of REAL growth i.e. factoring in inflation, housing improvements, building costs and tax legislation changes etc, the amount of growth may not be as rosey as we would all like to believe.

For example, my income has virtually doubled over the past decade but I don’t really feel like I have twice the spending power as I did when I first started out. Firstly, I pay more tax now and most of my essential living expenses have also gone up (food, transport, childcare etc). Technology has also surged ahead. That $3000 television set I bought 10 years ago was bleeding edge in home entertainment at the time. I can now go out and buy an equivalent sized but much more advanced unit for $500 but I need to spend around $10K for the latest flat panel display with a cinema quality sound system.

Basically, my income may have doubled but my cost of living and my expectations have also doubled. Just like rising property prices when viewed in real terms, I don’t think that my level of contentment has doubled in the same fashion. It’s a bit delusive but it sounds nice when I boast to people about how my income has increased two fold in the last decade.

Thanks for posting the research paper. It helps to put things into perspective without all the hype.

I just want to check the maths here foundation.

What is the average price in Sydney for a home.

Working on a figure of $500k.
2015 would be $1M
2025 would be $2M
2035 would be $4M
2045 would be $8M
2055 would be $16M
2065 would be $32M
2075 would be $64M
2085 would be $128M
2095 would be $256M
2105 would be $512M
2115 would be $1.024B
2125 would be $2.048B
2135 would be $4.096B
2145 would be $8.192B
2150 would be $12.278B

HOw you get trillion is way beyond me.

Have a great evening, you must be very bored.

Byronent
Adelaide SA

How about the myth that what you say is actually fact.

If you could live another 150 years I am sure you would be worth billions simply for getting to that age.

I never said you would be rich for owning the properties.

15 years ago, a million dollars was something but a dream, now you really got nothing to boast about with a million.

Times a change, so does the value of the dollar. If you want too feed the gullible with utter nonsense, how can you say you have evidence.

I am another living proof of property doubles at least once every ten years. From my own experience and my own portfolio.

I don’t need a professor who I am sure only owns his family home and possibly negative gears an IP.

Anyway, this is old, thanks for the topic foundation, hope to see another more challenging one.

42.3Million OMG how you come up with these numbers just makes my head spin.

Byronent
Adelaide SA