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Can you buy a 2 Bed in Vogeltown for under $400k?

Well, the answer is yes…..but, You would have had to have bought it in 2006.

This ad is nearly 15 years old.

The property was listed on the 3rd of March 2006 it sold for $383,000.

Then on the 8th of July 2010 it sold again for $417,000.

On the 30th of June 2016 it sold once more for $647,000 and according to Homes.co.nz it’s currently worth $805,000 as of May 2020.


So its been 14 years, 1 month and 28 days since this property has been advertised for $365,000 and it’s now worth $440,000 more than then.

It’s gone up in value by 109% in 14 years, not that bad at all.


During the last 5,173 days it’s gone up in value by $85.05 per day but that’s accounting for appreciation only.

I think we can assume the property was also tenanted during that time and market rent for this in 2006 was $420 per week or $60 per day.

Inflation of living costs would make it closer to $100 a day now but back then we didn’t have Airbnb or the inflated rent prices we have today.


  • For this calculation, I’ve assumed 100% occupancy but I’ve also assumed there’s been no rent increases in 14 years so it’s actually not too inaccurate.

So if we can agree that the property would have collected rent of $60 per day and appreciation of $85 per day then this property is earning in cash and paper equity a combined $52,800 a year.

If the average kiwi goes to work for 40 hours a week in 2020 they will earn the grand total of $49,000 per year in salary.

Even the average household income in 2006 was only $61,048 according to stats New Zealand.


So what can we make of this?

Should everyone run out and buy a house in Vogeltown? Probably not because sometime in the last 14 years someone decided it was a good idea to get rid of this suburb and its now part of Brooklyn.


But in all seriousness, this little 2 bedroom 1950’s house has out-earned half of all kiwis that are employed.

This is why to me “Working” for a living is such a mug’s game, why would anyone work all their lives for $50,000 per year when you can over a number of years buy say 8 homes like this that would given these rates of return earn $422,400 per year.

Obviously we are taking the mickey a little in these numbers, but I didn’t look very hard for this deal I honestly just had an old Newspaper and did some numbers.


But let’s be fair if this property did go up at 109% over 14 years then by 2034 the house will be worth well over $1,600,000.

Food for thought when you’re looking at you’re day job and what you spend the proceeds of your efforts on.




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