Have you ever 'forgotten' that you owned a property?

Its a 4/2/0 In Northcote that he paid $2,310,000 for 09/12/2013.
I don't know the area that well, but I don't see any way that its now worth $3m+ to hit that 40%+ profit figure.
Obviously a fair bit of the value is in the block size:
172 Clarke Street, Northcote VIC 3070 - House For Rent - 8956369

But it seems like there are far nicer properties in the area for less money:
121 Mitchell Street Northcote Vic 3070 - House for Sale #122701262 - realestate.com.au
12 Simpson Street Northcote Vic 3070 - House for Sale #122642810 - realestate.com.au

It seems to me that the person who did well here is the person who bought it in 2011 for $1,700,000 and then sold it 2 years & 4 months later for $2,300,000. They made their 35% profit / 12.16% per annum growth & it looks to me like he bought in at the top of the market.

So now he's holding an asset that looks like its potentially not even worth what he paid for it, (more like $2.1m to me?) for a glorious 1.58% rental yield.

Assuming he can use his Federal politician clout and network to get council to let him get creative with the block he can probably still make great money on it, but barring that scenario it seems like a dud to me.

 

aaaaah.....Pollies.

Bed...lying.....straight.

Yeah; I forget I had a property or 3...until the Bank statements come in every MONTH and remind me I have a loan to repay.

 

Poor Dave probably had a lot more things on his mind, like whether or not to give Kevin the boot, and if he had the other faceless men on speed dial.

And anyway, he would probably easily defend himself by asking "Can anyone get Frank Lowy to name all the large shopping centres he owns?".

It doesn't mean that Dave shouldn't adhere to the rules like everybody else though...