All Topics / Help Needed! / Capital growth rate?

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  • Profile photo of newbie2015newbie2015
    Participant
    @newbie2015
    Join Date: 2015
    Post Count: 8
    March 16, 2017 - 9:14 pm

    Hi all

    Just wanted some advice on how to calculate/forecast capital growth rate for Sydney apartments over 10 year period?

    I am currently using 3% but I haven’t really got a clue.

    Thanks in advance.

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282
    March 17, 2017 - 2:35 pm

    Well, nobody knows for sure. Some use past data as a guide for the future, others pay for extensive reports predicting future growth and some just guess 😂

    Personally, I don’t calculate CG in my calculations. Yes, I like to buy where there will be growth but that’s a bonus and I don’t believe there is a way to know for sure (could be 0, could be 10% p/a or anywhere in between 😉)

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of newbie2015newbie2015
    Participant
    @newbie2015
    Join Date: 2015
    Post Count: 8
    March 23, 2017 - 12:48 am

    Thanks for your reply.

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    March 23, 2017 - 3:14 pm

    There’s not real method – that’s crystal ball gazing.

    You can look at previous stats, but what drove those previous gains may not happen again so it’s effectively just you taking a guess.

    Apartments though, supply/demand equation is terrible for them everywhere in Australia as they are built more and more – so you could very well estimate a growth rate of 0%, or as has happened in some others capitals negative growth.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

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