Bondi Windfall

Discussion in 'Living Room' started by MTR, 18th Nov, 2020.

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  1. MTR

    MTR Well-Known Member

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    MTR, 18th Nov, 2020
    #1
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    I'm not that old but IIRC 1 pound = $2.

    Based on that and the magic of compound interest, it would have grown at 10.5% pa for 62 years (and no CGT).
     
    Scott No Mates, 18th Nov, 2020
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  3. pattoman

    pattoman Well-Known Member

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    1958 is a long time ago. It would not work out to be a particularly amazing return.
     
    pattoman, 18th Nov, 2020
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  4. Momentum

    Momentum Well-Known Member

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    How much would 11k pounds be worth in today's money.. I reckon it was a lot back then
     
    Momentum, 18th Nov, 2020
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Enough to buy a block of units in Bondi. :oops:
     
    Scott No Mates, 18th Nov, 2020
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  6. inertia

    inertia Well-Known Member

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    inertia, 18th Nov, 2020
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  7. spoon

    spoon Well-Known Member

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    I plugged it into a CAGR using $380K to cover 2020, it is 5.72% compound for 62 years. To me the key lesson is not the growth, it's being very stubborn and not selling, doesn't matter how good the offer sounds like until the last days of your life. But then there's not much time to enjoy the fruits. :rolleyes:

    Also, if she sold it one or two years earlier, she might get the James Packer's price?
     
    Last edited: 18th Nov, 2020
    spoon, 18th Nov, 2020
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  8. MTR

    MTR Well-Known Member

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    If only the seller developed the property, imagine the possibilities
     
    MTR, 18th Nov, 2020
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  9. wylie

    wylie Moderator Staff Member

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    I typed up a response but somehow lost it. I think they did well to get where they got, worked hard, managed to survive Auschwitz, well done.

    My only comment was that in 1958, 11,000 pounds was a LOT of money. I recall in 1966 my parents sold their first house for 2,000 pounds from memory, in Brisbane and the house on that block with full panoramic city views last sold for over $2m a while back. Probably would sell for over $3m now and other properties in that street up to $5m. But even their old house before being bulldozed for the new build would have commanded almost as much.

    Back then, they couldn't afford the "expensive" new builds on the other side of the hill that didn't have city views. in 1966 there was nothing to look at anyway. City Hall was the only "high-rise". So city views were not something anyone wanted back then.

    I'd assume that position on the harbour would always have been expensive. Good on them. But I don't think it was "cheap" back then. I think they were amazingly hard workers and savvy business people.
     
    wylie, 18th Nov, 2020
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  10. Momentum

    Momentum Well-Known Member

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    Yes buying this block of units back then would be the equivalent of spending millions in today's money
     
    Momentum, 19th Nov, 2020
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  11. Morgs

    Morgs Well-Known Member Business Member

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    We bought an "original condition" terrace in Annandale for circa $900k a few years ago that if I remember correctly, the owner had bought in the 50s for 700 pounds as a point of comparison.
     
    Morgs, 19th Nov, 2020
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  12. MTR

    MTR Well-Known Member

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    MTR, 10th Dec, 2020
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  13. geoffw

    geoffw Moderator Staff Member

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    geoffw, 10th Dec, 2020
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