warnie...I did another worksheet this morning looking at 3 props I hold....tracked the capital growth over the past 4-6 years, depending on how long each has been held....the commercial has shown 20% compound growth, and the 2 resi's 15% compound growth....current mv of the 3 is about 1.7 mill....if all continue that growth its tracking for a mv in 5 years of almost 4 mill........ now before everyone gets carried away to tell me that growth cannot be sustained......its just a worksheet looking at one picture....that could happen.... its a possibility..... if it stays with inflation of 4% thats still plus 368000 or 73600 pa increase.... or increase of 6% the increase is 574,000 or 114800 pa.. the above is capital growth only rental is not included..
compare that to holding the same money in the bank,,,, so in 5 years time you still have 1.7 mill
of course if the prop market falls over...then you are better off in the bank......
but the prop market will recover again....and on it goes... I am betting the prop market does not go down.....variety of reasons including the latest test showing inferior props are selling for more than they are worth, bringing the median prices down, the good props are not on the market or not selling in this current volatile environment...
nsw govt news today, releasing 1150 blocks house land packages in sw sydney....between 300,000 - 450,000 needs a lot more land than that to ease the shortge cheers
