Property Seminars pushing up property prices…

So if you keep an eye on the area it is quite possible the properties may come back on the market soon when the investors realise they have jumped in the deep end without a life jacket!

I do agree that property investing does seem to be flavour of the month, and not just because I actively read and learn about it – I think it’s a worldwide trend to do with a lot of things – 1) people moving away from the stockmarket at the moment because it’s too fickle 1b) managed funds aren’t getting the returns people expected 2) fear of buying a ‘ledger entry’ – people are wanting to have the security of a bricks’n’sticks investment that you can actually touch and has a use
3) people like property because it is an investment you can improve rather than just pray and hope about
4) super funds have been going down not up 5) an ageing population of baby-boomers are starting to worry about their retirement 6) the gradual phasing out of government assistance for retired people means people are having to start thinking about funding their retirement now.

to list but a few.
The education wave of Kiyosaki, tony Robbins, jon burley, richmastery, rick otton, reno kings, and lastly our man Steve McKnight is not a coincidence – there is a demand for this knowledge, because people who have traditionally handed over control of their money – money being the conversion of a person’s life-energy – are not getting the results they want from the so-called experts, and now want to take matters into their own hands.

As far as how that reflects on properties in previously cheap rural areas…well as far as I can tell, before, traditionally, negative gearing is how most people have done it- buying in areas which are poised to go up up up – location location location, by the sea, capital cities, capital gain. If capital gain is now maybe in doubt (bubbles said to be bursting?) or not able to be guaranteed by Divine decree, then there is going to be a big demand for positive cashflow properties – which people are starting to be aware of now – they’ve heard of them, they like the idea, and they want some.

( personally I reckon it’s investor confidence or lack of which makes a bubble burst – not any actual ‘thing’ that happes. people start talking about “bubbles bursting” out of fear that it might, papers sensationalise it, write big headlines, spread it further, and that makes it a self-fulfilling prophecy. Fear is so contagious!

So back to the investors. There are always going to be more investors with less money….(*self-conscious grin*) so they’re going to look for bargains at the bottom of the market. However there are a kazillion investors living in cities, all looking at investing in these tiniest smallest towns of 5 thousand, that were previously lucky to sell 27 houses a year and now selling that many in a month. Places that used to have houses on the market for, like, 4 years and it’s now 4 days!
To me, it’s not surprising that properties are starting to ‘run out’, or go up in price. Great for those that have already bought there though.

Like Steve says, solve peoples’ problems and make money.I guess it’s about a changing climate and how well we all adapt.

cheers-
Mini

rental demand is very high in most small towns, i wouldn’t be supprised if the next census shows a return of people to country Vic. Area around me are growing again after years of decline. Areas like Ararat, Stawell Horsham are buzzing even little towns like St Arnaud are doing we even though we are in the middle of a drought. As far as purchase prices goes- Kennett neally killed rural and regional victoria. for the last 3 years prices are starting to play catch up to Melb. When you look at the figures many towns had virtually no growth for 10 years. The latrobe valley went backwards big time. You can still buy properties returning 10% return in many areas this is going to keep demand high. but other areas the return is down to 6% so i’d be careful with such a low return
westan