hi all
Just wondering, if the more people start using positive cashflow property investing like Steve Mcknight describes in his book won’t it make the technique less effective. For example what happens to the supply of possible positive cashflow properties on the market as more investors like us try to buy these properties?
In financial markets once everybody starts using a successful method it generally loses its effectiveness until so many people are using it that nobody can make money trading that way.
Is it possible that this could happen to us?
Just stimuli for thought
Maybe it will help to ‘burst the bubble’ as investors smarten up and only purchase when the price is commiserate with return – although clearly that has not been the case in the last 4 years so who really knows …. [
]Mel
Alchemist,
I would think that would be the case. This site has a ton of new people looking for the way to make big dollars in +ve cash flow. And all the people turning into Today Tonight…
It will turn from the “renovation boom” to the “+ve cash flow boom”. Any IP worth buying for +ve gearing will be snapped up as quick as it advertised.
There will be an excess of rental properties looking for tenants, and if your IP is vacant then your are actually negative gearing which is not what your want for multiple IPs.
Of course, though there may be 100 people looking to invest and coming to this site and seminars, but not all people will stick at it.
…thats my thoughts of wisdom anyway..
[
]Regards,
Arty.[
]
“Why work to the age where you cant enjoy
what you have worked for !.” (Author: Me)Good point ALCHEMIST, I was reading my local real estate paper today, and for the first time that I am aware of the RE agents have had to resort to having ‘open houses’ to encourage renters!
I can assure you that these properties are NO where near being cash flow positive. And I dont believe they ever were.
For this reason I really feel for the investors (or locals) who done the research and were smart enough to come here before the the ‘buying frenzy’.[
]One day the rental situation will catch up, but I am glad I am not paying for an empty house until it does.
BC
In the short term, certainly.
But it doesn’t look easy to me, so I suspect only the most dedicated will stick with it long term. When the bubble bursts, the hunt will be on for many people to find the “next” big thing – back to shares?
cheers,
Darren.
In the short term, certainly.But it doesn’t look easy to me, so I suspect only the most dedicated will stick with it long term. When the bubble bursts, the hunt will be on for many people to find the “next” big thing – back to shares?
cheers,
Darren.Hehehe, shares have always been a big thing. You hit the nail on the head in your post when you mentioned “the dedicated”!
The dedicated always find a way of prospering in any market.
Someone will always be making a buck out of property, just gotta figure out how to do it in a flat/down market. Easy to do in shares….there must be a way in real estate too.
Wayne
For a little more than 10 yrs we have only purchased positively geared properties and now i see ppl finally waking up to it (most unfortunate for us) but it was inevitable, we made our money and can relax a bit now and wait and watch till things change and they will too.
I am totally new to this, and have spent the last three days looking all over the posts on this site. As someone was saying, the renovation boom would seem to cease as people look for +ve cash flow properties. I feel that while properties are increasing in value quite sharply,(especially in QLD), this would create a swarm of new renters, unable to afford the deposit for their first home. If property value were to taper out and recoil after such a steep incline, would this not then create an opportunity to purchase again, and maybe revert back to the renovation craze?
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