I have always had a clear memory of the day a buyer walked in to Ray White Moorooka wanting to spend $200,000.
It was 1998, it was my third year as an agent and I was 20. I was sitting at my desk at the front of our office in the Moorvale Village, on Moorooka’s high street and the sun was beaming in past the window cards in the front window filling the room with light.
The man walked up to my desk and said “G’day, I’d like to buy a low-set house. I’d like it on either the high side of Moorooka or in Tarragindi and I have up to $200,000 to spend”.
I looked up from my desk in amazement.
Two hundred thousand dollars, who on earth has two hundred thousand dollars to buy a house. To give you some context, the average price property we were selling was $120,000 and the really good homes, on the high side of Moorooka or in Tarragindi, would sell in the high $100,000s.
Which brings us to today. On Wednesday night I called an auction at 29 Truscott St, Moorooka for Michael Nolan. The house is a two-storey brick home, on the high side of Moorooka, but it is in need of a face lift.
Bidding started low at $420,000, but then things really started to pump. Back and forth the bids went: $450,000, $475,000, $500,000, $525,000 all the way to $715,000, when things paused.
The bid was then raised to $750,000 and “once, twice, third time and sold!”
If this home was worth approximately $150,000 in 1998, then that’s a five times return over the last 20 years and that includes a GFC!
I’m regularly questioned about the best way to make money in real estate and the answer I give is always the same. Buy what you can afford and plan to hold it forever. If I had of told the buyer in 1998 that his house would be worth $750,000 in 20 years, he would react the same way this buyer will if I tell them it would be worth $3.75 million in 2038. Who knows what will play out, but the mind boggles when you think about it.
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