Higher Yield Versus Capital Growth

The importance of Growth 2 properties both for sale each $500k – which one is the better investment??? A. Good growth prospects, returning $15k pa (assume inner Melb) B. Low growth, twice the return ($30k pa) (assume regional) Of course a number of factors are...

Understanding Property Price Growth

Why Does it Make Sense That Property Prices Have Increased 10x in 25 years In last month’s newsletter, I discussed that the price of houses in Melbourne has followed a trend of adding an extra 0 every 25 years. A house in 1942 worth $1k, was worth $10k in 1967,...

Can Property Prices Keep Increasing?

Why Property Growth Rates Must Slow I recently watched the owners of a house celebrate their sale after achieving a sale price of $1.5m. They had bought it 25 years ago for $150k! It made me wonder whether this type of growth could go on forever. I did some historical...