I read a response from Kay henry and in his response he mentioned that this boom is different to the last one and previous booms and the reason?As kay henry said maybe “because everyone knows about this one” mum ,dad, son, daughter grandparents ,media ,tv , aca ,tt, abc ,books just to name a few.Hardware store workshops bunnings etc even independants everyone and i mean everyone tom, dick and harry has jumped on the property boom bandwagon why didnt they jump on the last one and more importantly what does this mean for the next boom and what will one have to endure on the road to get there will it be the same as last time or will the fad mum and dad of died out by then remember the fuelling of the stockmarket from mum and dads.Is this RE bandwagon here to stay boom after boom or could it be just a decade thing. The 70s had free love the 80s disco and rollerskates lol the 90s had all decades rolled into one lol and this decade seems to be about working for yourself making the money for yourself and keeping it all to yourself what is this fuelling for the RE market for the future maybe many people will get burnt and wont go back for a second serving inthe next boom and everything will be back to normal for investors as long as the media doesnt get wind of it and make it out to be as simple as abc.What do you think.
Coreyj
The good thing about the seven year itch is that most people have short memories Corey, they loose the excitment and enthusiasm and search for something more.
Look at all the reno shows on tv, that got the mums and dads off their asses to create equity and use it!
The reno shows wont be around forever or “Hot Auction” type shows have a finite lifespan and I think the next group of shows maybe “how to kidnap your boss” or “my fish and chip shop rules”, focus will go from property but us smart ones will always be sniffing around like little mice, the quiet achievers….
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
the other reason many didn’t know about it was because the media didn’t portray it as big as it does this time around…
“If You never never ask, you’ll never never know”
Corey,
I doubt that the interest in RE is over. It’s just changing. The sector was becoming very skewed, as first homebuyers became unable to enter it. Now there’ll be an extra demographic who is able to buy RE. That will create demand, but of course, investors will be reluctant to sell given the tax changes.
Booms can either end organically, as this one might have, with the price of homes becoming so inaffordable throughout much of Australia, and so demand became less. Or the can end with microeconomic change- such as change to interest rates or tax changes. The macroeconomic conditions were still perfect in Australian cities- with increasing migration etc. But I guess the Govt has decided that micro reform was necessary to move in first homebuyers.
This boom IS different. So many more Aussies have IP’s. The question is, will investors continue to buy. Will Meriton etc have a new market in new homebuyers as the rest of us stop selling and stock dries up? Will investors put their houses on the market and try to flog them off before July 1? Will investors who wish to buy wait until after July 1 and hope that then people will sell their houses for less than 12% profit so that the latter don’t have to pay the exit duty?
There are so many questions. Buy and holders will always be ok, I reckon, because the market is always having tax changes (who knows? The FHOG might disappear, then there’ll be less demand for people to buy, but a bigger rental pool), inflation changes, interest rate changes- all kinds of things. In the next 50 years, while I’m around, there will be a myriad of tax changes- including depreciation changes etc etc. We can;t expect that the conditions we bought into will remain the same for the lifetime of our purchase.
The only constant is change. Sometimes it helps to be zen.
kay henry
This is the first boom where technology has been an influencing factor. Agents websites are accessible from anywhere in Australia, newspaper classifieds likewise, forums like trhis and somersoft, the ability to buy reports on sales in a suburb over the internet, the ability to deal easily with mortgage brokers in different locations etc etc.
It will be interesting to see whether technology is also a fuelling factor in a downturn for example many people on this forum have been negative about this weeks changes in NSW. Will we talk the market down and become a self-fulfilling prophecy?
Back in 1988 everyone in Sydney seemed to be talking property prices.
Im only doing it a little bit for myself, my main aim is to also help all of my close friends and family to get out of the rat race, as well as building skate parks everywhere for youth entertainment instead of crime and other bad shit.
Nerr
Kev[strum]
Originally posted by krazystyler:instead of crime and other bad shit.
Interesting way to put it!!
But good idea none the less.I have to agree with CRJ, the informatione age is what its about. SO much easier to see what prices are on the other side of the country with the net. Also so much cheaper to contact agents over there with email, even internationally.
J
lol…. Kay is a “her” not a “him”…[baaa]
Good response none the less Kay
Avagoodeaster
Jason [cap]
Thank you Jason! I will and you also! I can’t find a proper easter egg smiley :o( So I have to give you this one that fell down the toilet :o( I’m sorry, Jason.
[dunny]
kay henry
I think that that information technology has played a major influence in this cycle, we are more aware now in a instant of time, could we communicate at this level 20 years ago NO wow what about the next 20 years what do you think?[grad]
Internet has had a lot to do with the latest boom cycle & I anticipate it will continue to transform investing into the future – not just property.
Howeer, it’s not the only factor – look at the economic indicators & trends
I’m looking forward to the first digital buying agent…hmmm – all those spotters on this forum will have to find another niche.
Cheers,
Aceyducey
technology is certainly helping markets work more efficiently. was only thinking yesterday how many more real estate transactions must be attributed to the advent of the mobile phone
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
Why is everything different this time? As George Bernard Shaw once said:
We learn from history that we learn nothing from history.
Josh
Hi all,
A couple of others.
Deregulation of the banking industry has also played its part – alternative lending criteria, different lending policies, widespread acceptance of equity loans, a changing mindest towards debt and establishment of mortgage broking as a service industry (its all Simon’s fault).
Shifting population demographics and the realisation (16 years after event) that compulsory super won’t cut the mustard for most people.
As for timing the next boom (if this one has truly ended) – provided you can meet your repayments and have no financial issues – this has less relevance as property tends to be more fogiving in the long term.
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
so many questions:
* what ‘times’ are we comparing?
* are we even in a boom?
* are the baby boomers causing a protracted change to the market fundamentals?
* has technology permanently changed the market?and finally does it matter? the only thing that history can show is that property consistently goes up in value. It’s about the only certainty in life – so hold on tight to it!
everything cycles ..remember the “money’ show with paul clitheroe getting all the mums and dads (who had no idea into the share market) and remember when all the taxi drivers had a share tip, now they have the hot growth area for property). That “shares” show kinda dissappeared from the radar when the tech boom failed with other blue chips. The property tv shows will go the same direction in due course.
The majority of people have herd mentallity in that the have an entry point be it property or shares (following the rest) but have no idea of an exit strategy.
How many people even in here have never even thought about developing an exit plan should the unforseeable happen to their investment or thier abitity to fund it……mmm thought so
Ted,
Don’t you think using a cliche like “herd mentality” is a bit… umm… herdish? hehe.
Exit strategy… now, lemme think about that. Well, keeping my job is a way of sustaining my serviceability, so that’s not a problem. I also have income protection insurance as part of my package, so that shouldn’t be an issue. I will never buy shares (for my own reasons), so it’s not like I’m gonna leave property.
If we are supposed to be long-term investors in property (remember, it always goes up- hehe [baaa] then why do I need an exit strategy. I am just gonna be entering, not exiting.
But if one manages one’s finances, one can always sell off an IP. That’s some kind of way of alleviating possible pain. What’s your exit strategy, SuperTed?
kay henry
<<<<<How many people even in here have never even thought about developing an exit plan should the unforseeable happen to their investment or thier abitity to fund it……mmm thought so
>>>>Tell me a bit more about what you mean by an Exit strategy? Do you just mean being in a position to sell when you need to as against holding all properties till you loose them.
I have been an investor since 1997, I have not seen any properties go down in value. So any info an an exit strategy and its importance would be good.
Kay Henry.. I know generalising is a bad thing and you might be slightly different from the herd.
The herd refers to the majority of property investors in australia that have jumped in on this “latest” boom.
A lot of people have bought property on a short term speculative gain (like in the share market boom before it), theyve watched the shows its easy, buy houses, do them up then flog them for short term large profit.
Not everyone has +ve geared property which they can hold for the long term like yourself. I acknowledge that many people in here have +ve geared property. They represent a small percentage of the property invesors in australia.
The majority of property “investors” in australia have -ve geared property and have only 1 or 2 properties.
Also its possible for +ve geared to turn -ve with a low yeilds. Do you hold and hope for these to turn +ve again.
A exit plan would possibly inlcude income protection insurance (hope you dont ever have to claim it for a long term period) but more importantly the exit plan would include a thought process that would include the concept that the initial property purchases could turn out to be bad. most people $ee the good and forget about the bad things that could and can happen.
Many people rushin with $$ signs in there eyes with no thought that it might not turn out the way they think. (for example look at city units where people put down there deposits bonds without thinking that this investment could be worth less 2 yrs down the track when its due for completion).
Yack yes that the way i was thinking. A plan put in place wherebuy you decide the exit criteria and not the exit forced upon you.
Ted,
Thanks for clarifying what you meant
My situation, just for your clarification, is no better than anyone else’s on here. But I see property as a fun thing, as a thing I enjoy, so I’m not counting how many IP’s people have. It’s not useful, helpful or fun to do that. [thumbsdownanimI dunno how many people on here have an exit strategy. Mine is:
Job -> buy property -> die (the ultimate exit).
kay henry
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