Forum Replies Created
Ha ha ha, HAAAA ha ha, HHHAAA haa haaa.
Your Funny.NO seriously. I suggest you stop looking for houses and start looking for units if you want to spend under $450K within 12Km's of the CBD.
But be very aware of buying even a unit in this overpriced market. If (very unlikely) the prices do continue to rise, then Mr Glenn Stevens will hammer up the interest rates to stop the rising prices…as he has said he will do.Hi Harb,
I have seen that graph before, it looks like Niall Fergusson's work.
That fact that the House price Index goes up exponentially is very misleading and kills all credibility.Devo76, I didn't mention anything about selling property. The transaction costs would make that a pretty silly idea, especially when house price falls (or rises) are predictions.
However what I am trying to implicate, is that in the current climate I believe it would be wise to keep your money in the bank (if, that is, you have some money in the bank). Leveraging into the property market at the top of a cycle may not be such a wise move, but holding property for the long term and riding out the cycles would be.Holy crap Eloi, ever heard of spell checker?
Crusty, you have to compare apples with apples. You mention that money in the bank will be subjected to 3% inflation per year? And what about property, you don't think that inflation will also erode the value of your property? You also need property to go up by 3% a year in value to keep up with inflation. Take stagnant (or falling!) house prices, add in your interest payments, land and water rates, property maintenance fees….
Property prices will need to go up by at least 6-8% per year just to break even. Makes 6% in the bank sound attractive. The reason why you are paying tax on your money in the bank, IS BECAUSE YOU ARE MAKING MONEY. Claiming a deduction from your tax bill via negative gearing MEANS YOU ARE LOSING MONEY.
Property investment is a great idea in a booming market, but I don't think there are many people out there who still believe that prices will continue to boom. And to have the attitude that "if the sky falls, it's Ok, everyone else is also going to get burnt" is not the attitude that will make you wealthy.Hi Amsaini15,
The answer is bound to create some controversy among the property bulls:
Steve Keen's http://www.debtdeflation.com/blogsand also talkfinance.net
Ha ha ha!
Look's like you called it a wee bit early Ummester. Bloody FHBG has caught you out…
I am reminded of a house I looked at recently, which backed onto a busy road.
Great price, great house. But when standing in the backyard, the noise was unbearable.I would not live there, and if alot of other people share my view, If the discount isn't 30% or greater I would avoid.
Especially if it fronts onto the busy road. The tenant turnaround would be a headache.Hi All,
Have you read this article?
http://www.smh.com.au/business/housing-bubble-trouble-for-the-middle-class-20100817-127lv.html
An interesting read.
Try writing a book, and selling it. The income you get from book sales should help you buy more properties…
You could call the book:
0 to 131 properties in 3.4 years.Hi Philip,
Thanks for your posts. I have checked out your website, and I am surprised that you seem to be a little bit bearish towards Australian property at the moment. I would have thought that due to your vested interest in the future of Australian house prices, you would promote bullish views?
I appreciate your honesty.…and why the hell do my comments always post twice?????
Hi All,
I am new to this site, and have noticed alot of people asking about the effectiveness of certain seminars, programs, etc.I would have thought that if their ideas/knowledge/information was so effective, then why promote it? Why not just keep the information to yourself and become extremely wealthy by utilising this knowledge?
Do you really think they are providing these courses and/or assisted property transactions to help you become wealthy?
No way…It's all about Numero Uno. Trust no one, especially when money is involved.
DWolfe, why have I spent two years researching?
Because two years ago when I was 18 years old and still on apprentice wages I don't think diving into property "speculation" would have been appropriate.
…and two years of researching is telling me that 6.51% in the bank is probably the best bet at the moment in this uncertain market.
Property might not dive, it might stay stable, but you would have to have rocks in your head if you think it can continue to climb upwards like it has over the last few years.But wait, I just read in Saturdays West Australian that I should buy now or else I will be locked out of the property market forever! Sorry but two years of research is enough to know how to seperate the BS from the facts.
Work Smart, Not Hard
Hi Guys,
My first post so please be nice!
I am new to the property investing game, and am still to purchase. But I can't quite figure it out….
I have read and researched every thing possible about property investing for over 2 years…and as much as I would like to purchase an investment property, everything I have learnt is saying NO! Don't Buy! This is a bubble about to burst!
Have you property investors got balls of steel, or have you simply forgotten the basic fundamentals of property investing?For instance:
Never follow the crowd.
The ATO reports that 1 in every 7 taxpayers are property investors. Sounds bloody crowded to me!Buy positive geared property.
Yeah right. In today's market? Maybe in Muckinbudin or Meekatharra?Buy in a growth area.
I'm sorry, but it looks like the beanstalk has already grown, and I think Jack is about to swing the axe.Tell me something: I can understand current property investors will hold onto their properties during a downturn/price plateau…but they won't be increasing their holdings during this phase, not only because they don't want to, but also because they can't refinance through increased equity…and 1st homebuyers aren't buying….and upgraders can't sell so can't upgrade…and reinstated rules are slowing overseas property investors…
so who the hell is going to buy?
I smell a correction
