Same strategy but two different outcomes

Good lad

 

And time in.

 

Id say its asset selection ( cap city vs regional) and letting time in the market do its thing. Each prop (regional vs cap city) would have compounded growth..with the cagr for cap cities beinh higher over the long term than regionals, assuming all other things being equal except yield where tyhe rwgionals would likely have yielded more and that would have helped day to day opex...but over long term cg to when they bought..the cc was heads and shoulders more.
Thats not to discount yield plays- maybe they really needed the money yielded at that time..? Who knows....but over the long term the cagr will likely be more for cc as the op shows...and a significant difference as it is compounded growth.

 

A winning combination.

 

Let's not forget that a house bought in the early 70's for 10k has been fully paid off for over 10 years now. Assuming they took out an "ordinary" mortgage P&I over 30 years of course. Best way to do it if you have time and rental cashflow on your side.
How long have IO loans been "mainstream"?

 

Timing becomes less important the longer its held...and vice versa.
Given that both parties held for a long time , id say timing has played a minimal role in the 3 vs 30 mil differential.

 

Interesting to see your tax bill in this case. The more you earn - the more you pay, one way or another.

 

I guess I'm referring to a larger time span. That is, these guys were investing in a particular suburb of Melbourne before it became expensive. That generation did really well with timing. Woulďbe much more difficult to find a nice suburb on a train line and buy so many houses in this day and age and who knows whether it would be as rewarding over the same period of time.
Therefore, an investor has to consider many variables and weigh up whether now is the right time to use that strategy or not. What is happening now? What alternatives are possible?

 

I think at the end of the day if you can buy time does net value matter think about this one?

There was a survey on happiness and net worth which I read years ago now ......so we have someone worth 10 million versus 2 million, outcome - made no difference with regards to happiness, much easier to achieve 2 million.

Back to time...I think buying TIME is far more important than net worth

 

Im happy to pay tax on a profit..

 

Paying tax on a dollar earned is better than not earning a dollar.

 

.. and if you set up structures etc. you should be paying no more than 30% tax, unless you are mega rich owning multi national companies etc, then you pay no tax