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.
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.
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.
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: