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Where would you be today if you'd bought property 20 years ago?

Ben Everingham, Pumped on Property

I remember driving around Mollymook, a beach side suburb South of Wollongong, when I was 12.

I was listening to my parents talk about a holiday house they were going to buy for $75,000.

Also read: Housing shouldn’t hit bank stability: RBA

My Dad, always the conservative, said it was over priced and they couldn’t afford it.

21 years later the house just re-sold for $850,000.

Also read: Here’s how long it really takes to save for your first home deposit

I’ve had friends tell me it would be great to see where she would be in 2018, if thye’d bought 1 to 3 properties in Sydney, Melbourne or Brisbane 20 years ago.

What blew me away after breaking down the numbers was the affect that compound growth and time have on an investors long term financial position.

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Also read: Good news for NAB mortgage holders as the bank opts to HOLD rates

I have also thrown in this little gem, complements of the ABS and Core Logic, which looks at the long term performance of Sydney, Melbourne and Brisbane:

Take a look at Pumped on Property’s full video here