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marcadrian78
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@marcadrian78
Join Date: 2008
Post Count: 4
October 23, 2008 - 12:12 am
crashy wrote:
dragun wrote:
Tonight on 60 minutes there was a segment on property prices dropping by up to 40% within the next few years. it does seem a little drastic to throw around figures of 40%.
the stock market has fallen 40% in less than a year !!
it's not DRASTIC, it's PLAUSIBLE
Don't forget that the stock market plays out daily and therefore there is an element of forced selling/buying which can align itself with the fear/greed prevelant in the market during that day/hour/minute.
Perhaps if people were forced to sell houses on a daily basis we would see such drastic falls, but to say that it happened in the stock market so it can then happen in the property market is incorrect.
marcadrian78
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@marcadrian78
Join Date: 2008
Post Count: 4
October 14, 2008 - 1:54 am
harb wrote:
marcadrian78 wrote:
We bought our 4 bedroom house in Sydney in Oct 2005 for $490k with interest rates around 7%.
We cannot currently sell it for more than $460k.
This is a nice house in a cul de sac located about 20km from the CBD. Close to a train line, low crime area and lots of schools around etc.
Sounds perfect so may I ask why sell it ? If you can't handle the higher rates then you only have yourself to blame. If there are other reasons like job transfer, etc. and can hold on to it then why not rent it out for a few years and get some tax benefits?
The money is not a concern as we are sitting on plenty of cash and high incomes. The problem is that we have to hold onto a property that might still come down to be worth 400k and then take another 5 years just to make it back to 490k where we bought it. Why do we want the headache of such an exercise? We don't… we want to move on with our lives. I don't enjoy being a landlord but we're stuck in this position.
Oh well made a killing on the stocks and got out Nov 07 so you can't have it all
marcadrian78
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@marcadrian78
Join Date: 2008
Post Count: 4
October 10, 2008 - 3:21 am
We bought our 4 bedroom house in Sydney in Oct 2005 for $490k with interest rates around 7%.
We cannot currently sell it for more than $460k.
This is a nice house in a cul de sac located about 20km from the CBD. Close to a train line, low crime area and lots of schools around etc.
Someone made a comment about macro/micro markets. It is true. You can still make a buck in property if you are in the right time/place. However, that window of oppurtunity for time/place is currently very very small. It will get larger as time goes on but you have to wait for a number of things to happen first:
1. Interest rates need to drop further
2. Economy needs to be proven to be sound, not just talk from politicians
3. Credit needs to flow
4. A *severe* housing crisis needs to occur. This has not happened yet – you can still rent for a decent price, and you can still shack up with mum and dad who probably live in a 4 bedroom house with plenty of space anyway.
5. People need to forget how much money they lost post 97-03 boom
When is all that going to happen? It is certainly not going to happen while share markets are tanking and/or going sideways, which will be at LEAST for the next 12 months.
I dare you to disagree.
marcadrian78
Member
@marcadrian78
Join Date: 2008
Post Count: 4
May 27, 2008 - 6:06 am
I haven't played the cashflow game, but I tell you what I have been getting into lately – SIMCITY DELUXE 4.
It has taught me a lot about zoning, water requirements, traffic, transport, budgets etc. I can highly recommend it.
I'm in the lower north shore and would be interested in joining a cashflow game if anyone hosts one. I don't know how to play it, but how hard can making money be?