Forum Replies Created
- Originally posted by TMA:
It is not about finding a tenant. It is about finding a tenant who will pay rent at a level that justifies the ridiculous purchase price of those units. There are 800k units there only renting for less than $400 per week. That is just a joke and makes holding such a property very unaffordable for many investors. This is why they are being forced to sell.
TMA
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First Home Buyer WebsiteYeah I agree with this point although not all apartments are 800k earning $400pw mind you. I am just asking about what people think of the future of this area. I know its been bad and a lot of people were ripped off. Does that mean that will remain forever? I mean if you could pick up an apartment for 400K that was renting for $450pw, say in another years time as this area has such a bad rep from the past few years. Could there be some good deals then?
Originally posted by AUSPROP:Cap growth on shares? I have never seen it. in my experience the volatility of shares (and usually in a downward direction!) makes the dividend a negligible consideration. am i bitter???
Hmmm… wasn’t there something like 26% capital growth in the all ords in the past 12 months?
One of the best pieces of advice I ever heard was from a very successful american investor. He said it in about mid 1999 and said “I know its time to get out of the stock market when I go to dinner parties and all people talk about is how much money they have made and are making in the markets”.
I think this is very true. I think the end of a boom can sometimes be told when the not so smart people are throwing money at something or when people start saying crazy things like “This time is different” or “You can’t lose money in property, it always goes up”.
In my experience everything goes in cycles.
I am interested that you say there are few tenants. Where are you getting this from? As far as I can tell (my experience included) the apartments are not taking long to fill at all. Sure when a new building comes on the market with 300 apartments its taking some time to fill but I know people who have had apartments in the docklands for about 3-4 years and they have never been empty yet.
There is a lot of hype about this over supply but I have never really heard of people being forced to sell because they can’t find a tenant.
Hi guys,
Thanks for your responses. I guess it makes me feel a bit better to know that I haven’t been that stupid. I absolutely understand that property can fall as well as rise. I know a few disgruntled people who actually believed it when CE said the apartments would rise by x% amount by the time we needed to settle. I never bought that cause with any investment there is never a guarantee.
I guess I just feel stupid because I bought into the hype and at the end of the day I feel I have got a bit of a lemon because of the reputation these apartments have. I hear from people in Australia ‘Oh I’d never by anything from CE. They have such a bad rep’. So by hearing people say that now I feel like the idiot that bought in.
My intention was always to hold the property for sometime as I have lived in a few capital cities over the world and I have never really known there to be ‘too many’ apartments to live so long term I still believe it will work out. Still it doesn’t make it any easier to deal with the situation as it is now.
CP.