It Isn’t Luck!
Keep your property portfolio!
I caught up with a friend and mentor of mine recently who’s a very successful property developer. He was telling me how he always found it funny when people told him he was lucky his properties had doubled and sometimes tripled in value since he purchased.
“Lucky? I’ve owned some of those properties for 25 years and had to continually problem solve to keep them in my portfolio, that isn’t luck! That’s resilience and time in the market - the hardest parts!”
25 years ago when he’d bought these properties they were considered on the fringe of metropolitan Melbourne, but as the population grew, so did demand and housing pushed out into suburbs further from the CBD, therefore, lifting the value of his properties.
This reminded me that today's ‘sticks’ is tomorrow’s ‘sexy suburb’, it’s just time in the market and continually restructuring our portfolios to position ourselves for maximum capital growth.
| Median House Prices | 1990 | 2002 | 2016 |
|---|---|---|---|
| Sydney | $174,000 | $452,000 | $970,000 |
| Melbourne | $147,000 | $327,500 | $711,000 |
| Brisbane | $110,000 | $185,000 | $537,500 |
Source: ABS/REAI.
