Hi all,
If you haven’t decided to sell, it is a good time to lock some profits before loosing much more money.
“JP Morgan estimates that Australian house prices are 22 per cent above fair value – Sydney being the least attractive market, with a 36 per cent overvaluation – and that this overvaluation will cause investors to seek alternative investments or sit on the sidelines.”
http://www.finance.news.com.au/story/0,10166,16821438-462,00.html
Clones
Only goes to show what Ive been trying to tell everyone here[hmm] Its easy to say a property is worth x amount of dollars, but it is only when you actually try to sell it that its true value is realised.
I wonder what is going to happen when the heap of people (there has been a huge amount of ‘mum and dad’ ‘investors’thanks to T.V/media) that have bought property whith no idea of how it all really works, and when they have to sell all of a sudden realise that there is no one to buy their ‘investment’ and take a huge hit[laughing] And then this is when the pretenders are sorted from the real investors[lmao] So many back yarders are guna get hurt, its sad but true…..
Hi Guys
If you buy to hold for the long term to take passive income in the future what does it matter what happens now is it about the cycles of the market.
Please correct me if i am wrong am hear to learn so go for it.regards Richo [blink]
I agree with RICHO1.
The values are nice to know, but it’s the rent and interest rates that’s impotant. Most Mum and Dad investors wont even look at selling unless the interest rates start to creep over the 10 % mark. When prices start to fall home owners don’t sell up either, this causes the falling of prices to be only temporarily. Home owners and long term investors don’t put their properties on the market, therefore the demand starts to out way the supply and prices start to level of again.What a crock of….I reckon the clowns at JP Morgan wouldn’t know if their A$$ was on fire. Do people actually take notice of their drivel ??
Making broad sweeping statements like “the Sydeney market is 36% overvalued” is a load of toss and should be treated as such. One simply cannot lump that many different and unique housing situations into one big melting pot and come up with a sensible number. It cannot be done.
Maybe handy for the suits in towers trading LPT’s and the like, but little M&D investors should simply ignore this carry on and “stick to their knitting”….to use a common big end of town phrase.
Begone Mr JP Morgan and co.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
You don’t need to sell in order to lock in a current valuation and use of the profits either.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I think the clowns are others.
Have Mortgage Hunter and Dazzling ever stopped talking the property market up without any real fact. Any comment in this forum about something wrong with the IP market is just wrong and based on their comments all the market is rose colour.
Keep believing it mate.
Clones
I think Dazzling was alluding to the fact you cant accuratly comment on the nsw market like that as a whole.Or any market for that matter. For it to be accurate it would have to specify which area of the Nsw market was overvalued 36%. Inner city units, brown houses, orange houses etc…Incidently i noticed in last weekends papers (cant remember exact details) that several of the richer suburbs where still perfoming quite well. With auctions selling well over reserve… Will see if I can find…
cheers Thomas
based on their comments all the market is rose colour.Absolutely not Clones. Never – not once – have you ever heard me talk about ‘the market’ or other high level musings.
I am very much a “down in the weeds” type of investor….head down, nose to the ground, scrounging through the myriad of dross out there in ‘the market’, sniffing out that elusive unloved diamond in the rough.
I have absolutely no idea what the view looks like from up there in the stratosphere where all of these ‘experts’ and market commentators posticulate. What I do know is that the massive variety of property that I scour over to find the roughies, can never be lumped into one figure. It is a complete nonsense.
Furthermore, as I’ve written before, one cannot buy ‘the Sydney 4×2 market’, or ‘the Melbourne apartment market’…so what’s the point of endlessly writing and wringing your hands over it. My suggestion would be, why not concentrate your efforts on purchasing those props that do not conform to ‘the market’ average quoted and instead well and truly outperform. At least your actions can slightly influence the outcome.
Looking at the overall market at worrying about it is akin to worrying about fuel prices….it maybe a concern to you, but there ain’t a damn thing you can do about it….howza about concentrate on your own little vegie patch where you have some influence.
Cheers,
Darryl Moore
“No point having a cake if you can’t eat it.”
“JP Morgan estimates that Australian house prices are 22 per cent above fair value – Sydney being the least attractive market, with a 36 per cent overvaluation – and that this overvaluation will cause investors to seek alternative investments or sit on the sidelines.”
a few interesting bones to pick out of that lot. What are they basing this over valuation on and what is ‘fair value’ – whose fair value is it? To generalise about every residence in Australia is huge, but I suppose general market trends tell you where your base portfolio is heading. The trouble is most of these guys have never left Sydney and for them the word Sydney and Australia is interchangeable. Perhaps they can sell short some WA houses – I would gleefully lock in a settlement for 12 motnhs time at a 15% discount to current valuation – leaves them with 7% immediate gain.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
There are several things that concern me as a property investor when making a purchase to add to my portfolio.
Is the property sound in construction.
Can I afford it.
Is the yield reasonable
Is there good prospect for CG
Why am I buying the property (cash flow or CG or maybe both.)
Have I allowed a buffer if things changeIf I am happy with the answers to the above, who cares what the experts have to say. It’s my property, not theirs. I recon if I had listened to the experts over the time I have been investing I would still be living in a rental to scared to do anything.
Bradshaw.
I would agree with the JPM estimate that some cities are very overpriced.
True, new infrustructure, economic and lifestyle factors can cause a suburbs value to rise/fall.
Supply and demand vary from area to area etc. You can talk about that stuff all day.
What is the real reason for rises in prices in the last 5-10 years? Three words.LOW INTEREST RATES!!!
People can now borrow far more so they can afford to buy property at prices that have escalated way out of kilter with inflation/income/rents etc.
I think that if these rates remain at these levels then the property market should remain stagnant/fall/rise depending on local market.
If interest rates rise significally, then in my opinion, there will be carnage on the market with prices falling back to more realistic levels. Those who overextended on over priced properties could be facing huge losses.
We shoul all be very cautious.Originally posted by clones:I think the clowns are others.
Have Mortgage Hunter and Dazzling ever stopped talking the property market up without any real fact. Any comment in this forum about something wrong with the IP market is just wrong and based on their comments all the market is rose colour.
Keep believing it mate.
Clones
I am positive about the long term prospects of quality property.
Don’t you like my opinion?
I doubt I have ever said that anyone was wrong? Nor do I have any agenda here.
What facts would you like? I don’t think I have any – all I go on is my experience and what I can read of historical performance.
You seem to get upset easy mate – perhaps you need to take a little lie down after reading opinions you don’t agree with.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi All,
Clones, why dont you just follow the herd and start investing in shares.
That will leave more property for me to buy!
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