Sydney Leads the Nation…Downwards

We tried that via email. It never ends with dmichie. Email after email of negative propaganda kept coming. One thing I have learned from successful people is that if you surround yourself with negative people, it will bring you down.

I just find it astounding that anyone would base their whole property purchase strategy on the collapse of an economy! This may amount to one or two purchases every ten years. No thanks… I look for opportunities regardless of the current economic climate.

By the way, I don’t drink beer and the Northern and Eastern Beaches locals will never see eye to eye on anything. The Northerners think they are better than us but everyone knows the best are in the East!!! )))

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Besides the comments made by others about your focus on the negative that may transpire also from other post I have not read, your idea that falling prices is good because it stops people from living is misinformed and contradicts economic principles, yet perhaps defining your own thought pattern.

First of all Sydney receives an influx of some 70,000 migrants a year, so much for people leaving.
Second, prices are the result of offer and demand plus external government interventions.

Prices go up because more people want to buy than there is on offer, so two or more people want to buy the same house and whoever pays more wins.

The motivations for people to buy a house in any market, varies from wanting to cash a government carrot, to genuine housing or investment needs to Johnny came late syndrome.

Prices go down because one or more of the above factors declines and there is more than one house for each buyer.

In any market there are always hype merchants and gloom merchant. In my experience, the true hype merchant are usually professionals with a hidden agenda, yet the gloom merchants are a bit different.

You have on one hand the media who sell doom and gloom as their way to attract viewers of a negative mind set (the majority) in order to sell them Toyota and Macdonald. But in the gloom selling world there is a large bunch of amateurs, the volunteers of downturn and disaster, who spread the bad news real or imaginary created by the professionals in the media, in an attempt to support their own negative view of the world.

“I told you so” would perhaps be the best sentence they can come up with, and any attempt to explain how a negative focus will forcibly become a reality if you keep long enough at it is met with ridicule.

Optimist or positive focused people are fools in their eyes, and doom and gloom volunteers keep their mouth corners in a downturn curve and a persistent frown funeral director style on their forehead, as a mark of seriousness and gravity, that makes them in their view in tune with this sad and truly bad world we live in. Disaster in a doom volunteer is default and positive things happen by accident and through “luck” or a “brake” in the naturally bad world.

I think that any attempt to turn people of this mindset around is a long shot and usually needs a lot of dedication. Large employers spend millions in hiring professionals for this purpose even when the results are usually in the 5% order, simply because the natural man does not want to change and clings to his own values or anti-values as if his life depend on it. An in a sense it does. If you are happy with the results you obtained so far, all you need to do is keep on doing what you are doing and you get more of the same.
Yet to conclude on your “disaster is good” idea, it is a fact of life that some people feel at easy in a falling market because it alleviates them from the pressure of achieving success.

In a way people that think like this feel relieved from the fact that in a downturn market disaster is common to all, so if I am in trouble so is everyone else, and anything I can achieve by chance is a bonus. In an upward market though, success is the trend and for a negative person this is unbearable and a pressure that is intolerable. People who succeed in an upward market become “speculators” and “greedy” in their eyes, they will find all sort of excuses to place labels of broken ethics, immorality, cruelty or any other alien factor they can think of onto the optimistic who is doing well in order to justify their own mediocrity. A market crash or downturn is so welcomed that they slide down with the rest with a smile on their face picking some wins here and there on the way down firmly believing this is the best way to go.

http://www.chosen4u.com/?ace

“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
Marc

Yes men and positive people are two very different things. A positive person is a person who has made their own mind up and decided to be positive, a yes man is someone who follows your opinion despite their own.

I have had to move inter-state to avoid negative nellies and drains on my personal energy. I have intentionally surrounded myself with others who will encourage and discuss without blame or put-downs. Birds of a feather flock together but also if you get caught in a flock you will either become one or move on. I moved on and it has helped.

I whole heartedly agree with 1Winner concerning doom volunteers. I’ve seen them and I’ve had to put up with their constant nay-saying. If you so “no, wont happen” long enough sooner or later you’ll be right, but in the mean time you miss all the opportunities. So Sydney isn’t achieving it’s price potential, whatever, get over it these things happen. At the same time there are still plenty of profit making opportunities there.

If it gets too expensive, no one will buy there. They’ll look elsewhere and the price will “fall” and it will rise somewhere else as demand outstrips supply until it is too expensive there and they come back to Sydney. Will that take 10 years? Probably not. But it is possible. Either way it is not particularly important. We live in a not only national economy, but as people are investing in NZ can attest, we also live in a global economy.

DMichie, move on. Pick a new place to doom and gloom about, Sydeny is well covered and I would find more use from information concerning other places.

Hum, what to say to the above? So we lost 12,000 young and gained 170,000 mature and that is …. bad?
When I concede that some are of the opinion that over 40 are ancient and over 50 should be shot, in my (old) book of demographics that is a severe NET gain in people who have large housing needs. Furthermore I rather have an over 60 tenant than a 30 year old. If you do not, I don’t know what business you are in but it is certainly not residential investment.

As to your response to my simplistic explanation of the market, I don’t think you read it properly. You are quoting me in reference to an up market yet referring to a current down….but hey, I am not in the business of convincing people, if you enjoy the downslide because it makes you feel better, slide away!

http://www.chosen4u.com/?ace

“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
Marc