What is every ones opinion on the “property bubble”?
everyone is talking, buying, renovating, wrapping property.
We have property infotainment shows. Everyone jumping on the bandwagon.
But suddenly we are getting a lot of negative publicity, investors are starting to get nervous and we are starting to hear doom and gloom talk.
Is this a sign of an about to burst bubble?
Yes, we all know about inner city etc etc. What about your average suburban plot? I have now found good tenants for all my properties and the dust is settling and renovations almost complete.
Have sold one block of units with good capital gain.
I am thinking of wait and see now. I have, after above sale, decided to only work part time from January, after 13 years of hectic work schedule
ReginaHi Regina,
There has been alot of articles in the Australian Property
Investor magazine and in Personal Investor magazine (http://www.personalinvestor.com.au/)with regards
to these topics.I don’t know where you live Regina, but around the Sth Eastern suburbs of Melbourne there are A LOT of ‘for lease’ signs up. This is not a good sign for property investors and I have been told that now it is a renter’s market not a buyers market. Some renter’s have been able to negotiate their rent down, due to the increased number of properties for rent. A vacant property looses money especially a negatively geared one! Better to take a cut of $40 then to loose out on $100. I guess wrapping avoids this somewhat.
Husband calling…got to go
Cheers
Soosh
It’s all our imperfections that make us perfect!
Wow Soosh, your husband has such power…..maybe I need to talk to him….[
]Regina I am also amazed at the hype. I do believe though that a lot of people have bought property at very inflated prices and may struggle for the rental market to catch up in a few years. On the flip side I have rented every property I have had for tenant within 4-5 days (maximum). I guess the clue is and always will be to buy good properties in high demand areas. Part of my due diligence is to see how the rental market is travelling. The upside (from an opportunistic perspective) is if they talk up the bubble enough property may drop down…..yahoo more to buy at better prices.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithPeople are like sheep in that they follow the pack.
Now that some of the leaders of the pack have changed directions, the less informed and educated will follow suit.
Same happens in stocks too.
When the market psychology shifts – market reation follows suit.
There’s just as much good information in the market at the moment too – like the new Vic. urban plan that restricts the development of the Eastern corridor.
Also, for Inner City investors, forecasts of higher density living planning will mean that those with land will get massive capital growth.
BUT… when the newspapers catch the sniffles the general market catches a cold.
I can’t see anything other than a correction – not on economic grounds – but because the nuff nuffs of the world believe it should happen.
Steam_Train
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