Hi guys,
>I guess my question though is what is defined as a property >investor ?
>Anyone who owns a house …… you need to own five >houses……what and who defines property investor.According to Australian data from 1994 I found on the web, out of all people that own properties in australia, 94 percent of them only own one principal place of residence. 6 percent of people who own property own one or more IPS (that they don’t live in.) Of that 6 percent, 9 percent own 3 or more properties.
Even though some of that nine percent might own squillions of properties a la Steve and Dave and distort the percentage, you could still count on the fact that owner-occupiers drive the market not ‘investors’.
I am becoming more and more convinced that the media drives the market by way of talking up or down ‘confidence’. Journalists write about investing and property without even understanding it, as the article about Wanaka property discussed on one of the NZ threads clearly shows!
Every day I seem to find another fault with the media, i think it must be some kind of bug-bear of mine at the moment.
It’s sad to me that people just believe what they read on television or read in a paper so blindly – I guess, it takes so much energy to research something to prove otherwise – and who can be bothered or has time? Most of us are lazy and use the media as ‘entertainment’.But I think it’s good to question the media cause they’re often wrong. Or at the very least just writing opinions, not facts.
cheers-
BarbHi all,
I’m new to this game but I think it’s the buyers who THINK they’re investors that push the property prices up not the investors.
They read or see an article, talk to a couple of friends over dinner and go out and buy a prperty thinking they have just become investors.
They buy a property at any price, don’t do their sums, buy from the heart and lock themselves away for the next twenty five years. God help them when intrest rates start rising.
I bought my first house in 1994 at 11.5% intrest, it was a rental and still is. I jumped on the bandwagon thinking I was an investor.
It has taken me untill now to be able to look for my second property. I’m a little wiser this time around. I’ll be crunching the numbers like a proper investor not a buyer thinking he’s an investor.
Don’t believe the hype, don’t believe everything you hear or read, do your sums, use a little common sence, shop wisely and there are bargains to be found every day no matter where you are.[
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