Carrara                    SOLD 1998 $149,900

                                  SOLD 2007 $275,000        Profit $125,100

NERANG                SOLD 1996 $164,900

                                  SOLD 2004 $309,000        Profit $144,100

PALM BEACH       SOLD 1999 $150,000

                                  SOLD 2004 $300,000        Profit $150,000

Reedy Creek          SOLD 1997 $159,900                         

                                   SOLD 2008 $344,000       Profit $184,100

These are not the best increases we have had just the average, also remeber that these properties at worst cost the people $20,000 in total to keep over the 10 years (about $40 per week on average, but probably less) with no money out of pocket up front. No wonder these people are happy they bought from us and kept their properties.

As I said some have done better than others, the Palm Beach property doubled in value in 5 years, yet the Carrara property did not quiet double in 9 years. I wish I knew which properies were going to have the bigger increase in capital growth, alas I do not have a crystal ball. It is funny though the best increases came from the properties that we thought were the worst.

The best example of a property we sold that I have found so far was in what we thought was a questionable areas of Brisbane for $39,950 in 1998 and that sold for $195,000 in 2008. That is a 500% increase in 10 years or 50% PA on average. Why doesn't the media tell about this property. If all the properties performed like this nothing would have made me happier, but I am not that smart to be able to do it every time. 

We were worried that these properties would not go up at all in value because we thought the area was questionable. Yet some other areas which we thought were great, and everybody else did were not as strong, if only we had a Cryatal Ball, however we did not and all we could do is tell you to buy a reasonable home in a reasonable area costing you as little as possible every week so that you can hang onto it for 10 years or more. The results speak for themselves.

All it takes is time, if you ask somebody that bought a home 20 or 30 year what they paid for it they will tell you a ridiculous low price. Yet if you ask them if you had told them at the time of purchase that the property would be worth what it is today what would they have thought? They would all answer that they would have thought you either Insane or a Conman, because no one would believe you that property could increase so much.

I do not have a Crystal Ball and I can not tell you which property will increase more in value than another, anyone that can is lying. For instance they say beach front is the best in the past on the Gold Coast. Lets just check on that when the next Cyclone hits the Gold Coast and see if that still rings true.

All I can suggest is buying the best property that you can in a reasonable area, and make sure it costs you as little as possible to keep every week. It is no good getting a so called bargain if it costs you $300 a week and you can not afford to keep it, you would be better off with a average property that only cost you $100 per week, because you can hold it and keep ot for 10 years or more. if you can find a bargain that costs you very little, than get it, but these are very rare.

I hear on the radio lately about properties that cost only $50 per week now, but when you look into it you are paying a low subsidised interest rate, and that interest will be capitalised onto your loan and after 4 years you will probably be paying $300 per week. Not quite as good, and who knows what will happen in 4 years. I personally think you would have been better off with an average property that only costs $170 per week that you know you can keep for 10 years or more because 4 years is to short a time to own property for.