I don’t believe that there is a uniform 10% drop in all properties everywhere, according to aust prop investor magazine, it is hitting mainly the inner city appartments and mainly in Melb and Sydney.

I’m sure some savvy investors were cashing in at the top of the market, but not all. Just think about it, if you bought property for cashflow and the rents are covering the mortgage repayments and then some, why would you sell?

Investors get caught out in a downturn if there is a huge shortfall between what rents are bringing and what banks are charging, or if they are too geared. If you have $100 million of property and a bank loan of $50 million you are sitting prety in a hot market, in a downturn, that property might all of a sudden be worth $45 million and all of a sudden you have to come up with the difference or there will be some major bank sales!!!

We recently got rid of the highly geared or non performing properties (those below 12% yields), the ones we are holding on to are either very high cashflow or almost entirely debt free. That way we are protected against a downturn.(they will still be worth less, but hopefully the banks wont be chasing us).

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do banks actually follow a logical protocol?

I don’t think so!!!

We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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settle down, take a deep breath, spilled paint is not worth crying about.

Soon you will have your rental property, learning to handle these problems is what will make you a great rather than average property investor.

It’s not an easy job, tennants even like to test you, I recently had a phone call from my new tenants complaining that the 3 bedrooms in the house I just rented them were different sizes!!!

Figure that one out?????

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Hi P

It depends on when the properties were bought and how much gross rental yield they have. People are definately hurting, especially those that bought off the plan appartments at the top of the market cycle. There are some appartments 5K from where I live that were sold off the plan for $900,000 and have been appraised for $730,000 on completion. Investors are walking off and forgoing their $90,000 deposit! Those that are buying have to come up with more money, as the bank will only lend on the appraised value.

That’s one example, it is happening everywhere, I get approached almost daly by investors that have bought off the plan asking me to buy their appartments from them (I don’t buy appartments by the way, unless someone wants to sell me the whole block!!), the downturn is definately affecting people and its real!

However, for prepared investors, these are exciting times and the time to get back into the market and pick up more property!

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Hi AXJ

I have two friends that are identical twins, raised in the same family in the same conditions, yet they are totally different and don’t agree on everything. Let alone two people that are put together by marriage, there are bound to be differences of opinions in many things, investing is just one of them.

If my partner doesn’t agree with an investment strategy, then its my fault and I’m not communicating the full benefits to him. I find that if I have it clear in my head what the numbers are, what we can make and what the risks are, he is more likely to come to the table. If you’re not that good at selling your ideas, maybe finding a mentor who can help to communicate things to your partner will aid your situation.

My partner was also ultraconservative and very scared in the early days, we started small and he got to SEE that money can be made. We also went to the same courses and once he got his education up, there was almost an instant overnight shift into an investor context of thinking! Now he manages his own projects and I manage mine, that way we get double the amount of investing done!

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hi Carlin
just wondering, how did you go?

We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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my god, what have I started???????

We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582

what a sad way to have an increased rental yield!!!

We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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only joking,

I’m not really selling my kids!!!

sometimes you have to spell out the blatant obvious on this forum incase someone actually does take it seriously[angry2][angry2][angry2]

We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
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phone 0412 437 582

The only time I have ever had long vacancies and under market rents was when I tried to use an agent!!!

We now manage our own properties and our vacancy rates are consistently less than a week!

I have no faith in agents, have you tried taking it off their hands?

We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582