So very curious.... real figures Friend purchased a block of land, beach side, paid $95,000 in 1998 Held land, did nothing, today land valued at $1.5M Can some maths person give me the outcome? Was it worth holding?? Doing nothing. Average growth pa? This is clearly not what most investors would do
Landbanking on a micro scale. About 12.8% PA compounding - this may be higher than the median price increase for the area due to a limited supply of vacant &/or beachfront land.
I bought a house in 1998 for $90500. Did a minor reno on settlement, and nothing since. Today it's worth approx $600k. So, if you want to compare the pair, then I'd definitely say it was worth holding. Mind you, I couldn't have held onto land for that length of time, because I needed the rental income.
It's little bit above what average which over time makes a big difference and may be due to many factors including timing. Plus the rent paid to you. And you have the practicality of having income to borrow to buy more.
