Mum and Dad bought a home in Engadine, a suburb on the South side of Sydney, in 1997 for $415,000.
It was one of the nicest houses, in one of the nicest streets at the time.
They could have bought a cheaper home, in a cheaper street for $350,000 at the time, but decided to go for quality.
In 2019, their property would be worth $1,250,000 (if they still owned it), while the cheaper homes in the suburb are only worth $950,000.
Their decision to spend an extra $65,000 in 1997 resulted in a $300,000 difference in the value of their property over 22 years.
When I hear investors say that quality doesn’t matter, I cringe.
History is filled with these simple principles.
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