Hey everyone,
How are we all? I know great deals exist in all times with the residential property industry, however accept that the boom is virtually coming to a close (or has already ended, depending on who you talk to), however believe things will start to pick up and be affordable again during 2005-2006. Still at uni, with part-time work, this is good for me, as it allows me time to save & finish my course (ie. enter full-time job) so I can save up a bit more $$$. Just a question though, I am interested in people’s responses to what there is to do for the next 12-18 months while property prices settle? I mean, surely not everyone looking from an investment approach will go on an extended holiday for 12 months, but also, there must be ways to make money from purchasing properties throughout this next cyclic turn… Surely… Any tips/advice? I dont want to buy something that looks like a good deal now, only for it to have been better for me to hold the cash, invest it elsewhere in a term-deposit or something, while I could’ve been in the same position (ie. hold the same property at the same cost to me) in 12 months time. Just interested to what more experienced investors & other members think about this sort of situation.
Thanks!(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
By holding I reckon (note I have little experience in investing) you are losing ground to inflation, So you would need to find a deal twice as good later on to make it worth it.
Do you really think the financial papers know what the market will be in 12 months (what is the weather forecast tomorrow?), Buy a property for what it is worth or less ie: cash+ IPs. and then the market can deal in their imaginary future chicken eggs and it won’t affect you. GET the good interest rates while you can.Good Luck[cigar]
lifexperience
I agree that these low interest rates are great… almost too tempting to resist, however Im not going to let that influence my decision to buy property & HOPE that it will give me a good return (either +CF, CapGains or both… whatever). As for reading the papers & listening to the media… while they may not be right, they sure do influence the general population’s state of mind, as not all people are members of sites such as this – they’re not all informed, and neither are we for that matter. Prediction is hard, but there is also no way Im going to write off the media’s response, and hence most of the general populations respose to new laws, tax benefits, and the “professional’s” predictions. After-all, there are economists etc who sit & study this kinda stuff all day, every day, as opposed to those weather people previously mentioned. I cant study the property market all day every day, nor can i do it such complexity as the economists etc do it, so it cant hurt to consider and probably follow most of the economists views & predictions.
Do Love those low interest rates though… lol!(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
the lowest but safer investments are bonds and deposits
the next group goes up according to risk factor, so you can figure where shares and international shares sit….up top, higher returns, greater risks.I like money to work for me if I have it! bank accounts dont so much at all, unless you might be talking offsets…but I dont use that either.
Elves
The only thing constant is change
The only difference between a weed and a flower is a judgement
H.C.,
If I have cash right now then I will look for property investment opportunity right now. I don’t like to wait until ’05 or ’06 because what would happen at ’05 or ’06 you found that the areas that you actually want to invest right go up 5-20%. You probably would say to yourself…damp I should buy it back then.Rather than kick yourself at the end, why not invest now?
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]Chan, I see your point, but taking into account that inflation compounds at say 3%p.a, in 18 months time, the property will have needed to have gone up by about 4.5% from now just for me to be in the same position. Taking into account the stage of the property cycle we are in, I dont think peoperties will appreciate by the 20%, maybe the 4.5%-5% (so Im in the same position as I am now anyway, less 18months of +CF), but further still, it looks like the real price of property will go down marginally.
Just my thoughts, but feel free to let me know what you think!(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
H.C.,
Say at ’05-’06 you buy your first investment property, how do you know it’s going to grow more then inflation after that. It’s anyone guest, so at the moment most of the media is gusting it. Are they right? I don’t know. Are they wrong? I don’t know.
And how do you know from now to ’05-’06 it’s going to grow 4.5-5%. It’s just a guess.
If you buy for +cf then I don’t think it’s matter when you buy coz you buy set and forget. Collecting your cash every week.
The same apply to quality investment property, it will grow in the future with your due diligence and market research in the area.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]my guess is similar to chans.
forget about the timing look at the investment
by itself.
if u make money from that investment u are simply on the right track.
regardless of when u purchased it.Hi
what about having some history with a leader
which in 12 months time will help you get another loan
if the deal good today, go for it
recovery[biggrin]“I should be content to look at a mountain for what it is and not as a comment on my life” D. Ignatow
Originally posted by holdencommodore:Chan, I see your point, but taking into account that inflation compounds at say 3%p.a, in 18 months time, the property will have needed to have gone up by about 4.5% from now just for me to be in the same position. Taking into account the stage of the property cycle we are in, I dont think peoperties will appreciate by the 20%, maybe the 4.5%-5% (so Im in the same position as I am now anyway, less 18months of +CF), but further still, it looks like the real price of property will go down marginally.
Just my thoughts, but feel free to let me know what you think!(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
HC or HSV
Don’t forget you are putting down only a percentage of the asking price ( your deposit ) you also have three people paying your IP off, the Taxman, you and the tenant..
You know leaving the money in the bank on a savings account is a ‘waste’, have a look at Dolf Deroos book..
and then ask why property..
REDWING“Money is a currency, like electricity and it requires momentum to make it Effective”
If you are worried about housing prices for the next 12-18 months then look at areas that will be dynamic for the that period. Brisbane looks like it will be on the up and up during this period and from all reports so will Darwin. Adelaide, despite recent growth in the long-term does not look so good.
It would depend on if you are looking to make a profit from buying in 12-18 months only to sell 2 – 3 years down the track or for a more long-term investment.
I found these articles interesting when looking at housing prices (not my site just a link I found interesting):
http://www.plt.law.uts.edu.au/~jwan/market_predictions.html
Of course many of the articles deal specifically with Sydney. While at times it might set a trend it does filter through to the other cities immediately.
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