Does Property Double Every 9 Years?
The answer is yes and no. It depends on what figures, graphs and dates you use. Using the median price graph of Australia in the last 50 years or so, its possible. If you use the graph from when they started keeping records (early 1800’s), definitely not. That graph shows many small ups and downs along a flat line but then a fairly steep incline post WW2.
A property has to increase at least 7.5% per annum to double its value in 9 years. RP Data’s list of median capital growth for the last ten years shows that nowhere in Australia has achieved an annual growth of 7.5% PA. Sydney got 7.06% and Melbourne got 7.21%. The last ten years included the flat, or declining, years post GFC. If you purchased a house at the bottom of the trough 2008-2013 (but not 2010 where there was a spike) in either Sydney or Melbourne then, yes, your property may double in nine years. Here in Byron, we just experienced a nine year gap between those who purchased at the peak in 06/07. Many sellers were lucky to sell with capital fully intact.
The statement that property doubles in value every nine years is bandied around recklessly by property spruikers. Mea Culpa – I used to use the phrase myself as well in my early days in the industry. If you buy a property in a good location at the right price, in the right location and in the right year, then yes, you may double your money in under ten years. But good luck, get good advice, or do your own extensive research. Many of these property investment companies springing up now ready to take care of your superannuation – take that claim with a grain of salt.
Barry Long’s Harry Seidler Home for Sale
Some Byron residents were followers of the spiritual teacher Barry Long. He lived here for a period and gave many talks. In the 1950s he commissioned a home from the then up-and-coming architect, Harry Seidler. That home (pictured above) in the Sydney suburb of Wahroonga is now for sale and asking $1.45M.
Barry Long was a journalist and the last editor of the Truth and then became the first editor of the Sunday Mirror. He was also the press secretary to NSW Premier Robert Askin. He went to breakfast one morning and told his wife and children he was going to India and never came back. He achieved a large following around the world as a tantric master and died in 2003 in Crabbes Creek.
Enova Energy Update
Regular readers will be aware of my support of local energy provider Enova. They have been in the process of raising over $3M to start a community owned retail energy distribution company that will purchase only renewable energy. In partnership with COREM (Community Owned Renewable Energy Mullumbimby) this is a game changer for our district for lower cost, sustainable, locally owned energy distribution – and probably a template for other regions and communities.
The share offer closed on November 27. There were many last minute purchasers and it looks like the $3M was reached. Since there is still a lot of processing to do, the deadline has been extended to December 17th. Shares are $1,000 each and will be held in trust. If you forgot, or were late, there is still time. Go on the website (enovaenergy.com.au) and download the prospectus. If you wish to talk to someone directly and get more info, please call Robert Rosen who is one of the directors on 0424 075029.
Do you own the best home in Oz?
A major TV production company is doing a series on “Australia’s Best Homes”. They have asked me to look out for interesting people with an interesting home. They want to find three prospects here in the Byron Bay area. It does not have to be a mega mansion but just a good home that the owner can explain why the property works and why it is special to them. If you have any interest in showing off your home, and your design and homemaking talent, please contact me and I will put you in touch with the producer.
Byron Shire Paid Parking
Mid December will be the start of paid parking in Byron Bay. The metres will charge $3 per hour 6 AM to 6 PM. Parking for four hours will be capped at $10 and some areas will be available for $20 a day. Locals can get an exemption for $50 a year. Go in to council with your driver’s license and get the sticker. However, even with an exemption you will still have to punch in your rego number into the machine, which is a bit of a hassle. The Byron Council Hotline for Paid Parking is 1300 811 942.
While I was in council getting a sticker, I happened to mention something banal like – lets hope this brings in some money for council. The reaction on the poor attendants face was remarkable. She said that I was the only person to have anything nice to say about it. The counter staff have been copping agro and abuse over this issue. What is the problem with some people? Aren’t they aware that council is on a financial black hole and this is one of the few options left open to them for raising a few bucks.
Byron Shire Council Story#2
Looks like raising money is crucial. Recently it was reported how Byron Shire Council passed the state wide financial audit “Fit for the Future”. This apparently is a step required to fend off the threat of amalgamation. The back-story to this is that apparently in order to pass this audit, council let go of a number of staff and planners. This could be just a matter of Peter paying Paul. The backlog of pending files and DAs is now humungous. The time it takes to now get anything through council is as long as ever. People at Stage 3 of Tallowood Estate in Mullumbimby, for example, were supposed to have title last August and have now been told February 2016 at the earliest. That has left a lot of families hoping to build a home still renting and twiddling their thumbs.