All Topics / The Treasure Chest / the good old days of PI

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  • Profile photo of richmondrichmond
    Participant
    @richmond
    Join Date: 2003
    Post Count: 831
    July 24, 2003 - 6:22 am

    Howdy,

    While we all know the current market is steaming hot, and some suggest it might be about to burst, what are people’s thoughts on what path positive cashflow investing might take in the future… Can anyone envisage a return to the “good old days” I keep reading about when cashflow + was relatively easy to find? (ie Steve McKnight’s early days in Ballarat which weren’t all that long ago??)

    Personally I think the market will just level off or dip moderately instead of “bursting”… and no, I don’t have any statistical evidence to back me up, it’s just what I reckon…

    r

    Profile photo of scottscott
    Member
    @scott
    Join Date: 2003
    Post Count: 110
    July 24, 2003 - 7:15 am

    G’day R
    There has to be a point where investors will stop buying in regional areas because the returns will not justify the purchase price. I’m guessing this point will be around 6%.

    My feeling is that it will take an enormous change in invsetor attitude for the bubble in regional areas to burst, although the current over supply of rental property in some areas may scare a few of the less committed investors away, cooling the market a little, untill things balance out again.

    Then again………..[?][;)]

    Cheers
    Scott S

    “Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
    -anon

    Profile photo of LeighLeigh
    Member
    @leigh
    Join Date: 2003
    Post Count: 130
    July 24, 2003 - 1:14 pm

    Would it be realistic to look at the trends of say the US to gauge an indication of the long term direction of property in Australia?

    What i mean by this is that because the US housing market has been around for a lot longer than Australia (obviously!) then what’s happened over the years in the US might be a good indication of what might happen here?

    Similarly, Australia seems to be some years ahead of NZ. So if you were to look at what’s happened here it might be a good indication of what’s going to take place in NZ over the next 1-2 decades?

    I know one thing that may push Australia into another huge supply of cf+ properties – interest rates as low as the US [:D].

    “If you can count your money, you don’t have a billion dollars”
    J. Paul Getty

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