Forum Replies Created
- krc306 wrote:JacM wrote:joeandchels wrote:There is no secret that property prices are at a all time high, in my opinion we will probably see a crash in prices in the following years as did other countries have following a "bubble".
Doom! Gloom! Doom! Gloom!
Seriously, not sure why this concept keeps coming up. Property is a supply and demand thing. Demand continues to go up because we humans continue to increase the population by means of breeding and immigration. Unless the immigration stops and the breeding reduces such that the population goes backwards, housing is going to be required in an increasing supply.
When will we hear something different from a property bull?
That's the answer! Borrow more… moooooooore! Equity mate! Houses ALWAYS go up. Never mind your technically ridiculous market entry point.
Isn't it strange how middle class are the ones who usually get screwed over. Smart money ain't in property at the moment. Unless you're cleaning up in the USA.
Period.
I ain't a bull and I ain't a bear. Call me a Bearull.
The reality is, some areas will boom, some areas will bust. Australia is a different market to the U.S. Read any of the forum posts from the people investing there, they will all tell you the same.
The middle class aren't getting screwed over. They just aren't trying hard enough to change their circumstances. Far as I can tell, the global standard of living keeps rising and the poverty levels keep dropping. Google around a little.
Unless you are a global conspiracy theorist, then we need to be harassing each other on another forum!Folks compare the GFC to the Great Depression. Are you kidding me? Us GFC kiddies have no idea what difficult is!
chappy1970 wrote:EV,
What a concise and methodical approach you and your partner applied.I'm trying to cram years 10-4 (year learning span) into a smaller time frame, my wife and I have had our kids (no more for us
).We have considerable equity and now have the finance ready for the IP, I have received considerable advise on the correct way forward; r.e. structure and strategy, now to find the right opportunity.
Chris
Thanks mate. Sometimes I get a bit cranky with myself for taking so long to get moving. Then I realised that there is no point, it is what it is and I am where I am.
Sounds to me like you are ready to pull the trigger! Get off these forums and do some number crunching brother! Keep us posted on your successes. I am keen to learn any lessons you have. Saves me learning them again!
Livestrong.
MrDarcy wrote:Well put empty vessel..Can I ask why you chose to invest in the unseen IP2 and units as IP3 (was the risk worth taking?)
Was this the plan when you set out initially?
What is the future plan with IP 5? You mention commercial or US are you diversifying with each IP?
Just trying to understand your strategy..
Why site-unseen? Time, it was in another state. No real need. Happy with the numbers and fundamentals research. I am used to buying shares and I have never "seen" these. They are just numbers. Helps me remove the emotion. Sure, I get valuations, building inspections and the best solicitor I can find. (I am not totally nuts!)
Was it worth the risk? So far –> so good. Time will tell. I will buy the IP5 either site unseen or through a buyers agent (which is really seeing).IP5?
Commercial is a candidate. Low probability right now. Too much I don't know so too much risk. I am investigating it to make sure there isn't something great I am missing.US Property?
This is NOT IP5. This is more about diversifying my risk out of existing US shares I am holding. I don't want to repatriate the funds yet due to CG tax and AUD flying high. At the moment my asset allocation is heavy on Aust Property and these US shares. A nice win-win strategy seems to be if I can find some low risk US cashflow property to rebalance. The catch is, right now, the risk seems quite high because I don't know enough or who to trust. There seems to be a whole bunch of dodgy US scam artists and hardcore sales groups ready to relieve me of my hard-won gains. I am fairly certain many of them haunt these forums.scullywaggs wrote:Thanks for your comments. I am going to make an appointment with the rental manager and talk about how they are not meeting my expectations. We had to sign a 2 year Management contract with the agency and looking through it last night I am unsure how I could get out it if I wanted to. The funny thing is the tenant herself: she is the receptionist for a real estate company in the area so she knows (probably better than me!) all the rules and regs! I suspect she is pushing to test me and see how much she can get done for nothing.
Am I the only person that finds a 2 year management contract a tad unacceptable? Especially if there are no clauses in there about termination. The PM agreements I have seen all have 4-6 weeks termination clauses. I remember reading that Margaret Lomas recommended negotiating this down to 2 weeks. Essentially any high quality PM would not see this as a problem because they know they can and do deliver high quality service for their landlords.
SmartGenY wrote:I signed up specifically just to comment on this after perusing these forums off and on over the past years.I don't think a lot of you bulls understand the current mindset of the Professional Gen Y, I'm 23 recent graduate engineer and between me and my partner we net about 80k pa and that could easily double over the next 5 years if the hard yards are put in.
We currently pay $11,180 pa in rent and have no problems living off 30k pa (after rent). Buying a nice house or rather a innercity flat is definitely an option.
From our point of view however its just not a good investment. Look at the stockmarket in the past 3 years, I can look at that market and feel fairly confident that a bubble is not currently present and stocks are correctly priced. Look at our housing market over the past 8 years, increased 77% according to that article, do you really expect that to happen over the next 8 years? LVRs cant get any higher (comparatively to good ol 70%).
Add that to the burden of a mortgage in comparison to the freedom of stocks or bonds, look at the AUD and the IP opportunities overseas.
We (or at least my piers) are not whining about prices, We are saying the world is our oyster and house prices stink. The way things are going, by the time I want to settle down and make a home and family all the Boomers IPs will be flooding the market
From my point of view negative gearing needs to be removed in the future to up rent prices and force some of the Gen Y into the market, cause at the moment I would rather get my taxes back by taking a 3month holiday to the ski fields then paying interest to a bank for an overvalued asset.
Just an insight to a commonly held view amongst my piers, granted the viewpoint of a recent finance graduate may be a bit different.
<br /:)” title=”>:)” class=”bbcode_smiley” />Interesting. 10 years ago I used to think like you. Now I earn 3 times as much and have 3 kids. I promise your perspective, priorities, planning and level of action as a result will change. Just like mine will 10 years from now. Good news is, renters like you are paying for my financial freedom strategy. Just like I did, for too long, for someone elses. That was until the "lightbulb went on". I am a bit of an idiot, it took about 4 years of contemplation and consideration for that lightbulb to switch on.
Unless you are a global conspiracy theorist, then we need to be harassing each other on another forum!
).
:)” title=”>:)” class=”bbcode_smiley” />
