Hi there,
Whilst some are wondering when the ‘property bubble’ will pop, others are out there buying up as if there is no tomorrow!
It seems that everyone is still investing in property and still looking for bargains!
I had a copy of API magazine out on the kitchen table and my house cleaner said “I’m onto my third now” She has 2 rural properties!
My babysitter, she has 6 properties and was looking in Frankston for another (although she was looking for a negatively geared property). In fact I gave her the web address to this site, when I mentioned and explained positive cashflow properties and so she’s probably around here somewhere…Come out Vonny!
The guy at Southland shopping centre who asked me if I was interested in attending a property investing seminar was talking about his investments, he was probably all of the age of 17!!! [
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Whilst it’s good to hear about everyones investing, it’s funny when they all tell you what you should do! []
Now If I want the house cleaned, I don’t leave my API mag lying around [:0)]Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Soosh,
Perhaps this is a worrying trend? The herd mentality as mentioned in another post?
I fear that when the property bubble bursts it will end in tears for many investors.
Time will tell..
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Steve,
Whilst I know there are still plenty of opportunity out there, I am also aware of the ‘herd mentality’ and YES it concerns me a great deal. I guess people need to realise they are responsible for their own money and they need to make the right decisions for themselves.
I can’t say I’m not guilty of foolhardy investing, in the beginning when I was green, very green (like the Hulk).
I do discuss with people their investing stratergy only when they invite me into their ideas. It’s a personal area that some people don’t want to talk about…for others it’s another notch on their belt. There are also those in between, who like to share and hear other’s ideas.
It’s like a Spectrum. A rainbow of investors []
The ‘herd’ stampeding towards buying up any property is dangerous, but as other forum members have already mentioned, as long as these investors have their exit clauses and stratergies prepaired, then I hope if the preverbial SHOULD hit the fan, then the negative side to their investing is mitigated by their planning.Like you Steve, I am concerned. I agree, time will tell.
Cheerio
Sooshie []“Giving is a Blessing, receiving is the bonus”
Yes, we are feeling a little anxious at times.
My strategy is the land componenent to the property and being cash flow positive and having the 20% deposit buffer and sticking to the low median price range in a well established area.
Also, having a rent that’s affordable and a well maintained property, so far so good.
We also live modestly and use every bit of spare money to reduce our home equity mortgage.
In terms of ranting and raving about property, which I am absolutely passionate about, I have to admit that I have a tendency to do this.
That’s why this site is so great! You can rant and rave to the converted and have a chance of being understood.
Yes, I am a property-aholic!
I cannot see any other way of avoiding the pension trap, retired couples receive the princely sum of 16,000 per year, from the government. Every dollar of income that we can get above pension level will be wonderful to us and more financialfreedom.
I’ve tried share trading and was one of the 90% of losers.
I’ve tried buying shares, but only have to look at it and it goes down.
Often, talking to people I just get blank looks and realise, I shouldn’t be saying so much about my property passion. Others admit, they should be doing something like this, but don’t take it any further.
My mother tells me I am lecturing people, and I guess you have to be careful to not be seen as a defacto financial adviser and get too carried away, so I am trying to keep things toned down.
I wish I had known someone when we first started to look at property and given me some informal advise, it might have helped avoid mistakes.
There are really very few people around you that you can talk to freely about your properties and what you are doing.sooshie
your story reminds me of the saying “when the Taxi driver gives you stock tips it’s time to sell”. Thinking now could be time to look elsewhere recently sold four properties planning to sell six more (will keep 11 in Australia and 3 just purchased in NZ), just to cash in some great capital gains and prepare to reinvest more in NZ. it amazing how many people are just entering the property market for the first time as an investor! i don’t really know much about wraps but maybe this is the best strategy for now if my belief that there won’t be much capital growth in most areas is true.
westanHi there Regina and Westan,
Nothing wrong with being a ‘property-aholic’ [
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I’ve always loved property. I used to make my parents take me on a drive to Toorak, Malvern and Kew, Templestowe etc both during the day (and night..hehehe “I can’t sleep, let’s go for a drive!)just so I could see the big houses and the beautiful tree lined streets. My dad did the driving and he was just happy to amuse his wife and daughter. This was only when I was small. As I started to get into my double digit years, my mum then took me to nurseries (plant variety) and we had Devonshire teas in the Dandenong ranges, Olinda, Emerald, Kalista etc. I learnt quite a bit about horticulture (actually I turned on the telly, channel 31, this evening and there were my parents on ‘Vassily’s gardening program’)
As I got older, I made Michael take me on drives (he had a car) over the Westgate Bridge (under the Westgate Bridge…Just kidding [][:0)]), Williamstown, Newport, Thomastown etc.
If I could have bought then, I’d be laughing all the way into early retirement at the age of 18!Westan, I guess you just need to know what your end goal is. Wraps has a two-fold purpose, 1) is to help someone get their foot in the door and 2)is to profit from that relationship, creating a win-win outcome. [
] I don’t have enough experience myself to tell individual investors what type of stratergy they should look for, but there are many at this forum with VERY good ideas! [^]
I do suggest however, to the new investors that they look close to home first, then venture out. It’s hard enough knowing all the legalities and tax issues of your own state, let alone that of the other state or in fact countries.There will still be Capital Growth opportunities in places where the market hasn’t experienced a boom in growth. For example (and it’s not without some trepedation that I mention this) it is of MY opinion that Geelong and especially cheaper suburbs of Corio and Norlane etc, which are closer to the city, have seen capital growth but the cycle hasn’t finished yet. In fact, Geelong is really beautiful and still close to the city. Yet there hasn’t been such a rush of investors there… well there could be, but I don’t know about it [
] Last time I was there (the week before the APIM) there were many new developments going on in Corio and some in Norlane.
I wish I had a crystal ball and yet again, I know with a crystal ball comes responsibility…
As long as investing remains a healthy sport, I’m all for it.
Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
i don’t think there is anything wrong with ‘the herd’ realising that if they want to be comfortable when they retire, the government is not going to be able to afford to
keep them in the style in which they have become accustomed. huge bell curve of aging population, combined with less in the workforce than ever before, coming up when the baby boomers hit retirement. All the data says ‘more old people coming up’. A lot of investors are saying ‘target the elderly in your investment properties, because they are a growing market share every day.So the Rich Dad Poor Dad investing wave is extremely timely.
I read for the first time John Burley’s ‘money secrets of the rich’ last night which an esteemed fellow forum member was kind enough to lend me, – brilliant! –
JB says that managed funds such as the S&P 500 get a 12-14 percent return. If this is true, then what are property people doing buggering around with deals that return less than?Perhaps it’s because the funds haven’t been doing that well of late – certainly superannuation hasn’t been going nuts lately.
perhaps people fear another crash, or the dollar is down, or they think they can do better with cashflow plus capital gains?Perhaps it’s that property is something you can add value to by improving it, and that’s not only quite fun but also lucrative, as well as making the world a bit nicer in a small way.
I don’t mind the trend towards people taking control of their finances and thinking about their investments all at once. it’s kind of the way things happen in this world, anyway – a lot of people will only be comfortable doing something if they have safety in numbers. i for one wouldn’t have felt comfortable investing in property without tuition from guys that have done it
and a crew to discuss it with (this forum) that i don’t necessarily have around me in real life – it definitely took the fear factor away.also it can seem like skiting when you’re telling tales of deals in real life, but in a forum you’re somewhat anonymous and become text on a page and so it’s kind of quite freeing, I find. Also your looks/age/gender don’t count on a forum (unless you want them to and mention them.)
Back to the herd. I think if a herd runs out and invests, all it’s going to mean is that the wealth will be more evenly distributed among the population. won’t it?
Dolf de roos says that property is much more forgiving than shares and always goes up (historically) if you hold it for ten years.
I think we’re OK. there are still more deals than investors. And when there aren’t, there’s always building businesses and stocks and shares. Anyone read ‘who moved my cheese’?
Basically the better you can deal with change, the better you will do. So when the market changes (if herds investing will change it) we might change our strategies, right?cheers-
MiniGreat post Mini, I have read Who Moved My Cheese as well…
If you can adapt to what is happening around you, rather than being static (afraid of change) then you will prosper. Thinking ahead… you have to wonder where will the money go TO when it comes out of the property bubble? Perhaps our strategies should factor this in too?
The contrarian investors view (to which I and I sense many others here subscribe) goes something like:
Superannuation funds, shares, and managed funds are dogs at the moment. Everyone wants a SMSF because they can do it themselves better than a fund manager can (have you seen the ads for seminars along these lines in the papers?) Property on the other hand is HOT HOT HOT – just like my taxi driver said when he told me about his property portfolio (good pt Westan). Every 2nd show on TV is the Block or Renovation Rescue number 637. So shouldn’t we now be selling property and buying shares in anticipation of when the bubble bursts and all that money flows back into the sharemarket?
Buy low and sell high is the saying, not buy lowest and sell highest.[
]Hi there,
Good points.
Have a great week…
Hi ho Hi ho
It’s off to bed I go
Sooshie []“Giving is a Blessing, receiving is the bonus”
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] I don’t have enough experience myself to tell individual investors what type of stratergy they should look for, but there are many at this forum with VERY good ideas! [^]
] Last time I was there (the week before the APIM) there were many new developments going on in Corio and some in Norlane.
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