My dear friends….

It’s not negativity. It’s reality. Don’t fool yourselves with theories about an eternal property boom.
This cannot go on! What on Earth justifies this price boom that we have experienced in last 5 years?
“Luckily” shares have dropped in their popularity, interest rates have dropped, world’s economy is pretty wobbly, wars around the world have created so many refugees flooding Australia in search for better life (therefore you have demand for rental properties) ….

Everybody is trying to jump onto this property boom wagon in a hope to make huge profits. It’s become fashionable to own several properties.
It seems to be a good vehicle in driving some peoples egos through the roof. They like to portray themselves as being smart when they make more money in property than a solicitor or doctor can in his job …

Just wait until all those solicitors and doctors start buying those egoist’s properties (they have thier vulture funds, don’t you worry) !!!

Even people that can’t add together two double digit numbers are walking into banks, brokerages(lucky brokers!), realestate agencies(lucky agents!) and asking for money to borrow (lots!) and properties to purchase.
They have no idea how the realestate market works at all. They treat it like a casino (remember, Australia is known as a gambling nation). Those sorts of people are driving the prices up.

Don’t be fooled by thinking that only those gamblers will loose if a bust happens. EVERYBODY is in the same boat.

Believe me, property price bust is not in my interest, because I own several properties myself. Since I’ve purchased most of them more than five years ago, imagine how much in CGT would I have to pay if I wanted to sell any of them (lucky ATO!). Yeah, you say: “don’t sell”.
Maybe I want to move into another property (growing family), what can I buy and for how much?
Thinking like this, maybe a property bust WOULD help me. Weird.

Has anybody experienced a wage increase in same percentage as property price rise? (not even remotely, I bet you – you’re just LUCKY to have a job these days). Ah, I forgot. You can live of your properties! TRY!

Maybe I have forgotten to mention something (you have already heard all this many times before, anyway). I’ll be back. Remember the doctors and solicitors (I am neither, unfortunately).They always were and always will be healthy, wealthy and wise.

PLAY ON!
GOOD LUCK! (we need it)

Milo

P.S. I know you’re all going to slam me for this, but let it be.

Condom,

What sort of comments were they?

Milo

Stuart,

Brisbane and Gold Coast prices still have a long way to grow before they reach the low yields of Sydney properties.
What I’m trying to say is that for example, my unit in Sydney is achieving around 4.1% return and house in Sydney 3.3%, while my unit in Southport(QLD) is returning 6% per year.
Reports in July edition of Property Investor magazine reflect the same.

Just a thought

Milo

Yep, Harold.

It’s Queensland’s turn finally.

Milo

Vindaman,

Excusae my choice of words, but don’t be silly!
There is nothing for free in this world!

I recently bought a unit in Southport for $192K, which was purchased for $210K four years ago the same way you have just described.
Four years ago the unit was actually worth under $150K.

The bad purchase partially contributed to a divorce between people that I purchased the unit from.
Go there by yourself and see the prices people pay at the local realestate agencies.

Thanks

Milo