100 times your money !

Sydney auctions: Haberfield house bought for $32,000 about 50 years ago fetches $3.255m

This diamond has gone up one hundred fold in 50 years. Back then it wasn't cheap. One could easily buy respectable new houses for $15000 in 1971.

The original owner would have paid the usual 20 percent down payment....say $3500 ( less than a years salary at the time, maybe the price of a new car?).

The house likely paid for itself if rented out......

Buying & never selling seems the way to go!

 

Parents bought first home (they still own) bought about 45 years ago for I think just over 120k. They worked exceptionally hard for many years and saved. They were short like 10k and borrowed from family at the time to buy it.

Recently their neighbour's house (quite inferior to my parent's) sold for 7.5m.

 

120k was a huge sum 45 years ago! One could have bought 6 houses with that in Perth or a bunch of other places . Was it a fancy location? I'm thinking Vaucluse or Dover Heights..... please share!

 

Bondi Beach, free standing. Wasn't cheap at the time. Their accountant advised against it. Ha!

 

@Comrade 1984 I just rpdata it to check the exact numbers.

• Sale Price: $162,000
• Sale Date: 1984

 

Always has been!!!!

Selling is the transfer of future growth to the Buyer

 

Thanks Sackie. Interesting.

 

I've yet to see an accountant or solicitor in private practice do well out of property (whereas their clients have had much more success).

 

What Sydney prices looked like 40 years ago when Bankstown was more expensive than Leichhardt

"Consider one of Sydney’s finest homes – the Elizabeth Bay mansion “Boomerang”. It sold in 1979 for more than $1 million, reportedly the first sale to achieve a seven-figure sale.

In 2016, the same home was being shopped around with a $60 million price tag. In 2002, it was the first property to surpass $20 million."

Probably worth $75m today...

 

Crazy times... it’s good to see the historical data.
Opened my eyes how Bankstown was more expensive than some inner city due to manufacturing industries.
Hard to conclude or what to think back then if you were sinking your hard earn.
Fast forward 50 years to the future - who knows where we will be.

 

My mum sold her house in Kealba 5 years ago for 320k. She said her and dad at the time were tossing up between that and Essendon but went the new estate for 20k Cheaper which they could afford.

A corner block in Essendon would have sold for 2mil+.

There is A LOT said about over leveraging BUT the vast majority of society can sustain high debt if they are forced too. IMO over leveraging in property is not as bad as it’s made out to be, given your purchasing blue chip land!!!

I don’t see it as debt at all. It’s just forced savings with some extraordinary compounding.

 

I don't know why some folks think accountants have the monopoly on great investment advice . If anything, they're a lot more conservative than many investors.

 

When I was a business owner, I would regularly tell my team that “No one has a monopoly on good idea, including me”.

In other words, if you have a idea, spit it out (obviously pre-COVID times).

 

Thanks for the link,there is an old saying..''Anyone can buy and sell''..Then you have the difference between the utility of wealth and the utility of sudden rapid changes in wealth not in a ascending market but one that asend then crashes..

 

I always hate these types of articles for exactly this reason. I roll my eyes every time I see one come up.

Us investors get inflation. But it just gives all the whiners ammunition to b###h about prices.

 

Imagine the change in the rate's bill

 

That we all know. But keeping a property for 50 years over the thick and thin is very difficult.

 

I disagree.

The longer one keeps a property, the easier it is to keep.

The longest-kept property in our portfolio is approaching 30 years. Bought in 1992, price $125,000, loan $100,000. Now valued at $750,000, rent $450 pw, loan repayments $51 pw (I/O interest rate 2.66%). Easy to keep.

I wish we kept our very first property as it would now be approaching 50 years. Bought in 1978 (43 years), price $26,000, loan $20,000. Now valued at $800,000. Sold in 1981 as I moved interstate and thought one could only own one property (as that was what my parents did).

 

This always confuses me. Been with the same accountant for many, many years, when we were broke. He's seen us buy, he's seen us sell, he's witnessed first hand what we've done (as well as many others, I'm sure), yet he's approaching retirement with nothing other than a PPOR.

 

Yes I would tend to agree. Accountants must see a lot of different ways that people make money and should in theory have a greater depth of understanding than the average Joe yet quite a few don't seem to grow much beyond simply being tax accountants, not that there is anything wrong with that of course. Life seems to get in the way just like for most Folks.