how about another question. Who is financially better off with property investing. Thats the thing. Sure some may lose through heavy gearing in a down turn but many will make it through. And for them and others starting out.The downside of not reaching financial independance may be that they still have assets they could sell or use to suppliment there wage. If that is failing then it looks ok to me. Many will not reach independance but many will creat real wealth from it.

Lot more room to move above $500,000. But im interetsed in how say the average house in a regional city around the $250,000 to $300,000 will be affected. I cant see a 40% or 50% drop on average. That would put many homes at or below replacement cost  with no consideration to the land value.This is why so many say the drop will vary greatly. Those overinflated areas will suffer. Some mining areas also. But many places have already returned to some normality. This is not to say they will not drop further. We are in a slump. Houses will slump, So will car values,boats,jet skis,collectibles, etc etc. But some areas will show more strength than others. Some came of the boil years ago and therefore have less to fall. Some areas where not driven by mining wealth etc etc. The question is what happens in a few years when this mess is sorted and confidence returns. Do you believe house values will stay at this low mark or do you believe we will see history repeat itself and as predictably as the tide. The next boom will begin. Now what if you were smart enough to build a property portfolio befor this purchased at a good price and maybe even very low fixed rates.While many try quickly to build a portfolio you have already done so and continue to add to it. You may then be the one with a property portfolio working for you listening to posters in years ahead telling you property is dead. All the time having a sly laugh to yourself knowing how the next boom and bust will play out over time. Just a theory but i think its safe to say that many will be in this situation. To think of the unlucky investors  many years ago that bought houses for $70,000 when they could have waited and got them for $60,000. How do they sleep at night.How do they struggle on knowing what they are worth today.

hbbehrendorff wrote:

devo76 wrote:

hbbehrendorff wrote:

Standing on the top of mount Everest,  We fall to a cliff three meters down and everyone is proclaiming this is the bottom… ROFL

Every bubble creates a similar shape coming down only mirror reversed,  Ive seen the charts ! lol

No recovery will come in 2009 or 2010 or 2011…  We have 15 years of bad times ahead of us… But lets just wait and see how everything is doing at the start of 2010.

Geezus man i need to know. Where do you get that crystal ball from. You must have the most accurate crystal ball ever made to be so confident on what is going to happen. Cmon tell me. Was it barrons bargains, the dollar shop. share share.

Predicting long term trends is easy,  Its short term that is impossible,  No one can predict the short term future…

Just like everyone was arguing last year whether we will have a recession in Australia or not, LOL

It will be the same thing when we are in a depression,  Everyone will be arguing that we are merely in a bad recession for the first few years.

The sooner investors get there head around this idea that life is not one big uptrend,  the sooner they can stop loosing all there money…  Just like investors refuse to believe the stock market will sink any further… 3250 and going down, lol  But 3400 was the bottom right ? just like 3100, 3000, 2900, 2800, 2700, 2600, 2500, 2400, 2300… will all be bottoms too !

But lucky property always goes up in value and is not subject to falling values like the stock market right ? That must be why Property dropped 80% in Japan

Pull your money out of the stock market and start buying Silver/Gold Short/Medium term bonds and you will get your chance for property later on while everyone is drowning

Remember,  Don't be Greedy while everyone else is,  People are still far far far to Greedy right now,  They hold to much hope yet,  Let them relish and consume all this toxic waste,  wait back from the sidelines until the Reapers come for the harvest.

Just look at all the big wigs,  They are loosing there fortunes left right and center,  Look at the losses Harvey Norman is taking, These billionaires are so cocky they refuse to believe anything else then what they have experienced for the past 18 years,  So they will continue to bet against the downtrend until many of them are homeless. 

People use there current experiences to predict the future,  This is all good and well until we come to a time in history of immense change and they cannot vision anything other then there past experiences coming to light,  They are blinded by there own success and it will cause there fall

fun times are coming

ALL TRUTH GOES THROUGH THREE STAGES:

FIRST IT IS RIDICULED

THEN IT IS VIOLENTLY OPPOSED

FINALLY, IT IS ACCEPTED AS SELF-EVIDENT

Im sure the majority of investors agree there are down turns. This keeps getting brought up along with the 7 year thing yet few actually investors preach it. So what you are saying is pick the bottom. Nothing new there really. Like i have said before its easy to bash property investing during a downturn but this is only one part of the cycle. That said i certainly would not rush out to buy now when its almost certain things will be cheaper in 6 months. The deal would have to be a good one to jump now. That said i believe from now into say the next few years people will position themselves to profit from the next upturn will othere will still find reasons to stay out.

Also on the gold thing. Its a given many are running to gold for safety and its rise in value is clear. So could one be so bold to say that gold itself is entering a bubble. What will happen when the share market stabilises and property starts moving again. Can anyone say GLOBAL GOLD PRICE CRASH. Just a thought. my crystal ball is cracked.

hbbehrendorff wrote:

Standing on the top of mount Everest,  We fall to a cliff three meters down and everyone is proclaiming this is the bottom… ROFL

Every bubble creates a similar shape coming down only mirror reversed,  Ive seen the charts ! lol

No recovery will come in 2009 or 2010 or 2011…  We have 15 years of bad times ahead of us… But lets just wait and see how everything is doing at the start of 2010.

Geezus man i need to know. Where do you get that crystal ball from. You must have the most accurate crystal ball ever made to be so confident on what is going to happen. Cmon tell me. Was it barrons bargains, the dollar shop. share share.

True. My IP is on a busy road during work hours. But the trade off is the tennant can walk 200 meters to a resteraunt or about 800 meters puts them in town for shopping,pubs etc. CBD living i guess.

I will post a link to this one after sale has finalised just incase it falls through and i get another go.As for the one im looking at now. keeping that one to myself.The return is not the greatest but it is prime development land in very sought after area and return good be pushed to about 8.5% at next rental review.Will post if i lose interest.

I would be happy to take the guaranteed 9% now than a possible 12 % in the future. In this time it could sell,prices stabilise,my personal circumstances may change and i can no longer buy.
I think holding for that extra might become a greed driven reaction.

I am looking at a property in a regional city ATM. 9.1% straight up with potential for rent increase. They are out there.

To wind back our military spending is not a wise thing to do. We spend next to nothing on it anyway in the big picture. In truth we cannot defend ourselves except from the constant stream of boat people. That aside we must have a presence and we  must be seen to work along side other military mights. We would be stuffed by ourselves as Australia is a very stategic piece of land. I work for a non military company that was awarded a contract to provide aircraft for target towing as well as other things. And from what we see there needs to be more not less spending. Our assets are dropping further and further behind. In the event of war or tension it is next to imposible to regaing that ground lost. The military is like insurance. You dont need them until the day you do need them.

A change sounds like a nice idea. But do we think this is a change or just the general sentiment of a population in a slump. Unfortunately we tend to have very short memories and im sure as things improve the same mistakes will be made again. So i guess it all depends on where you stand. Do you take the moral  high ground and refuse to get caught up in assets values rising to fast(No one will say no to equity when it is handed to them on a plate). Or do you position yourself to make the most of it next time around.  Who knows where we will be in ten years.