Every day we here stories of record lending for investment properties all over the country.
NSW now lends nearly 50% to investor’s for property.Qld lends 38% again to property investors.If ever there’s a time NOT to buy property, it must be now.I see first home buyers
sinking themselves up to their eye balls in debt.
If you know Sydney and some of these first home
buyers suburbs, Kellyville,Quakers Hill etc try driving around them. Some house lawns are looking a little unkept.Some houses are not keeping up to the rest of the street.This is where I will be looking for some good deals, as the strain becomes too much on paying the mortgage etc.
People buying in Tasmania, the joint is going backwards!! Wait for the first cold winds of credit restrictions to hit the place, and Tassie renters will jump ship. heading for the main land where there’s a better chance of employment.
The same goes for these country towns, most of your tenants are unmarried mothers.Grovelling so you won’t increase the the rent.(They might offer
to cut the increase out).Some of the posts I’ve read tonight are on this theme.Country towns are only where dead beats rent.Unmarried mothers, drugies, unemployed who just won’t work.If they really wanted a job they would be in the cities.
Want a headache? invest in reginal towns.
Me! I’ll stick to the city, THE ONLY CITY,Sydney.
Bruce G.[
] Run for your lives!I’m speechless!
[:0)][:0)][:0)][:0)][:0)][:0)][:0)][:0)]
You must be joking!?!?!
[:0)][:0)][:0)][:0)][:0)][:0)][:0)][:0)]
Hey Bruce,
What were u smoking when u wrote this ???????Bruce,
Thanks so much for your incisive contribution to the board, I’m sure many people found it extremely constructive and worthwhile.
As the offspring of a solid line of country folk, I am glad that you have opened my eyes with your generalisation of me and my clan, and many more like us, as the lowest of the low. I will try from now on to live up to your stereotype, by quitting my job and taking a few hits of smack. I’ll even call off my impending nuptials, but not until I get my fiance pregnant, so she too can fit neatly into your predetermined category.
I’ll post again soon with a progress report.
Regards,
Richmond.Unmarried mothers deadbeats! Mate thats harsh, my own mother sends a two finger salute (very smart lady with 3 brilliant children who came to the country with 10 dollars!). Geez.
Bruce
I’ve also heard that many brilliant leaders are in fact brought up in regional areas. They have the advantage of being able to think outside the square a bit more than others. ie they haven’t been brought up with the stereotypical thinking that people from big cities have!!
What ever it was that you were smoking when you wrote that post, can’t have been good stuff.
Ish
Correction[
],ie they haven’t been brought up with the stereotypical thinking that people from big cities can have!!
Not meant to be a slight on city people!!!
Ish[
]having slept on my response to bruce, I’d like to add that my mum, in a regional area, was left single by the death of my dad, who passed away aged 26… she brought up 3 kids… one is now an airline pilot, one is a television journalist, one is a police officer. gee mum, couldn’t you have done better? (Sorry to sound self-righteous, but I’m proud of my mum, and don’t like what bruce had to say)
R
Bruce,
Positive cash flow strategies are not for everyone. There is merit in both strategies (i.e. investing within 15kms of CBD and investing in high yielding country areas). You have made some gross generalisations that are perhaps a reflection of your lack of knowledge in this area.
I would think its every investors aim to secure strong tenants. Weaker tenants can be found in all areas (even in Sydney).
Good luck with your investing.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auWell, both our sides of the family are from, and in, the sticks. Thanks for socio-economic profile of me and mine.
Y o u W a n k e r
[
][][][][][][][][][][][][][][][][][][][][][][][]That was so funny!
Leigh K[
]Read, learn, grow but most of all just do it.
I believe Bruce does have a point, I do not wish to add to the single mum argument etc.
I know of one single mum who brought up 8 kids, educated them in private schools and ran a business!
Property is pricing itself out of the market for a huge number of low- average income families. the boom is fuelled by baby boomers and low interest rates.I keep saying, try to stick to an average price range housing that most people can afford to still rent or buy.
I also heard the statistics, that in any one year, one in 3 people require social security assistance!
I am also unclear about the future of cap.gain in tasmania (I think no to minimal population growth)or many country areas.
Prices depend on demand, land availability and population growth.
It may be that more and more people will move outwards as affordabilitiy of housing declines in the cities,this applies to retirees, those on low income or those on DSS.
Another statistic: public housing waiting lists number hundreds of thousands, those on the list are facing a wait of at least four years.
If you can solve the housing crisis for the underprivileged and still make some money out of it, the government will love you and support you!I think Regina is onto something and it’s already happening.
It’s interesting to look at migration flows, especially into and out of Sydney. Sydney absorbs the lions share of international migrants while exhibiting a large out-migration (mainly of Australian born) to northern NSW and Qld.
These ex-Sydney migrants are on average incomes or less and may not have steady employment. Even if they don’t get round to buying a house up there, the rent will be a bit cheaper and the winters warmer! I think this explains why average incomes and labour participation rates in many of the growth areas are low. And that investors buying -ve geared properties up there won’t necessarily get high rents from them!
Though Sydney is an international city, made up of high-income managers and international businesspeople, it still needs a large servant class to do jobs ranging from dog walking to valet parking to house cleaning that time-poor people prefer to outsource. It is these people that experience the most housing stress. If they were in a country town (or even in Adelaide or Perth) they could reasonably expect to buy their home, whereas they can’t in Sydney.
It seems that the need for a high income is an affliction of all ‘international cities’ (London, Zurich, New York are similar). The lifestyle is great if you have the dough. But not if you don’t! You can’t blame people for moving to ‘more liveable’ cities where property prices are more reasonable.
If house prices get too out of whack with wages, you could conceiveably see a labour shortage in Sydney. Already some of the richer suburbs have very low unemployment levels, probably because the unemployed can’t afford to live there unless they shared a house.
Peter
Hi there,
I read with interest all the posts here. [
]
I think it is advantageous that Bruce is going to do property investing in the city (Sydney, to be exact), as he misses one of the key/critical elements of property investing. ” It’s all about people ” (McKnight, Steve. https://www.propertyinvesting.com/strategies/wraps) []
With that type of attitude towards people who live in regional towns, I’m happy he doesn’t do wraps in regional Victoria, as he’d leave a very bad impression on regional townsfolk, making it harder for the rest of us when trying to create a win-win outcome.
Sure, there are some misfortunates in regional towns and perhaps at a higher proportion then in the CBD, but I’ve seen people with such foul mouths, with money, with pedigree, live in the CBD or inner 10kms of the city.
My wrapee, a mother of 8, soon to be 9, has opted to pay more than the amount agreed upon (no ‘grovelling’ here). She views the wrap as a ‘foot-in-the-door’ and is thankful for the opportunity. Granted, she is considered a financial risk, perhaps even a gamble, but if she goes on one day to help people in the same way, wouldn’t that be really special?
What about the lessons her children will learn, when they see the parents working and paying the bills, renovating their home the way they like it? Children learn by experience, they learn goal setting and self worth from their parents.With each person who takes action towards changing their life for the better, they fight the prejudice and the generalizations, which people like Bruce make towards them.
Bruce, I hope one day you might wish to challenge your perception of regional townsfolk and find out that you are pleasantly surprised by what you find.
Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Bruce Bruce Bruce,
I was not even going to bother responding to your post but can’t help myself.
Your comments only make me feel better about my own level of knowledge when it comes to PI.
The same goes for these country towns, most of your tenants are unmarried mothers.Grovelling so you won’t increase the the rent.(They might offer
to cut the increase out).Some of the posts I’ve read tonight are on this theme.Country towns are only where dead beats rent.Unmarried mothers, drugies, unemployed who just won’t work.If they really wanted a job they would be in the cities.
Want a headache? invest in reginal towns.
Me! I’ll stick to the city, THE ONLY CITY,Sydney.I’m not sure what country towns you are looking at but my IP is in regional Victoria and I have never in 3 years, rented to to any of the sort of people you have described.
I think you are generalising in the extreme. Do you honestly believe in a town of say 3000 people that they are all single mums, smoking dope?
Who owns and works in the shops, farms, public service. Who run’s the schools, builds the roads.I think that if you want to talk about hard work then perhaps you should work in a country area for a while and then you might understand what hard work realy is.
I’m sort of glad that you think that Sydney is the ONLY City to invest in. That keeps you well away from from the hard working people who feed you every day. I would hate to have you as my landlord if you have this sort of discriminatory attitude.
Your comments are as welcome as anyone else’s here but if you want people to read and respond to them perhaps you might try to not offend so many people in only your second post to this forum.
Have a good day.
You will always miss 100% of the shots you don’t take!
Gee,have I trod on everyone’s toes!!!
Jars, most uncomfortable those two fingers!
Regina & Kaye I am too old for that game,besides I’m married(Why bark when you own a dog!!!?)
To all those beautiful “persons” who I upset about unmarried mothers, I meant the types who live off welfare, sucking on your money called taxes.Not mine, I DON’T PAY TAXES!!!
My mother was our family bread earner,like all your mothers “SHE WORKED”.Brought up three snotty nose kids.
Arn’t those country bumkins a touchy lot!! I to
am a country boy.From a country town in West Aussie.A wharfie father caught me doing the
“deed” with his daughter.Him and his mates were going to kill me.Ran so far until I ran out of land(Sydney).
Just to fill you in a little, I have four properties in Sydney. On the Northen Beaches.
Harbord,Dee Why & North Curl Curl.Plus one in the north side suburb of Chatswood. Total valuation
of just under two million dollars.
Two have become neutral geared and two are neg. geared.Another five years for these two to become
neutral geared.
I also own a taxi.This I run from home. I have drivers for most shifts. I drive on Saturday and Sunday day shifts.
I am a WOG!! Worker of the Government.
Sorry if I upset you cute little rose petals.
Bruce G.Bruce Almighty (sorry, couldn’t resist the analogy [
]),
Congrats on the successful attainment of your property portfolio and thanks for adding a little spice to the forum. However, your comments still have that Northy overtone (oops now I’m guilty of stereotyping []). Looking forward to some constructive words of wisdom in the future. I live in Campbelltown NSW, I hope you don’t hold that against me. Sean.so you run a business but you don’t pay taxes? on anything? good to see you’re a fantastic contributor to society… society has to have taxes… it’s an unfortunate fact of life mate.
I’ll leave it there…
RWho said Sydney and Melb out perform regional areas in CG anyway? Buy in the right regional area and you’ll be surprised.
Warrnambool for example has doubled across the board in under 3 years. I was talking to a mate on the weekend who’s just got into RE (as an agent [
]) but he’s bought 4 cf+ properties there in the last 3 months. So cf+ and above 30% returns… In my opinion Warrnambool will continue to grow well over the next decade too, it’s such a great place (I grew up there) and industry and development are really taking off. Just take a look at council plans over the next 2-3 years and you’ll see what I mean. Baby Boomer paradise, just wait [].Gotta hand it to you though Bruce, you made me smile [:0)].
“If you can count your money, you don’t have a billion dollars”
J. Paul Getty
] Run for your lives!
],
]
]
]
]) but he’s bought 4 cf+ properties there in the last 3 months. So cf+ and above 30% returns… In my opinion Warrnambool will continue to grow well over the next decade too, it’s such a great place (I grew up there) and industry and development are really taking off. Just take a look at council plans over the next 2-3 years and you’ll see what I mean. Baby Boomer paradise, just wait [The topic ‘Run, It’s A Herd stampede !!’ is closed to new replies.
