T
here are a myriad investment
vehicles out there hoping to attract
your hard-earned dollars with the
promise of future wealth, so why
should property be top of your
list? In my experience, real estate is streets ahead
(excuse the pun) in three key areas: predictable
performance, leverage and control.Predictable performance
In my mid-teens, I distinctly remember one out-
come of my parents’ divorce was that mum paid
out dad, as part of the settlement, so she could
keep the family home.
My folks bought that house in Sydney’s western
suburbs in the early 1980s for $35,000. The markethadn’t seemed to show a hell of a lot of growth,
even after my mum became the sole owner. We
even went through the staggeringly high interest
rates of up to 17.5% in 1987 and 1988, which caused
many property owners no end of heartache and
some even to lose their homes.
Then, as if all of a sudden, it was 1993 and a
revaluation of the home revealed its worth was
$200,000. Nowadays that home would be worth
closer to $850,000.
It struck me, even back then, that it took little
effort to achieve that big result in capital growth.
I thought, “Geez, that’s a lot of money – that’s
crazy how much that property has gone up. You
bought it for that and it’s now worth this!”
This was the first time I took note of the con-Sow the seeds
Follow four fundamental philosophies to build a strong
portfolio – then sit back and watch it grow
STORY
PAUL GLOSSOPPROPERTY INVESTING