Yes the market has finally changed and in many places around the country prices are dropping because the greedy thought they were going to make a killing and get rich over night.
Realestate agents are very concerned and are spending bucket loads of money on marketing promotions with desperite developers to upbeat a sliding market, rental guarantees and discounts are comming out of the wood work.
Even the poor little mortgage broker is concerned where their next pay check is comming from and are now offering cash back from upfront commissions to intice new business.
So whats the good news – well I believe its now becomming a buyers market – look for the gloom and you will make a motso give me some feed back what do you think.
The good news is,
a) IF investors and nervious and getting out of the market, then it’s time to do the opposite and buy some bargains from those wanting to sell quickly.
b) IF you’ve invested well, then you should have nothing to worry about, simply collect your rents, keep investing and wait for the next cycle.Can’t see a change in cycle being a big problem.
PK
You gotta love the January sales after the Xmas rush!
Cheers,
Aceyducey
You can view it as “prices dropping” but in actual fact, they are just reflecting the “actual” prices that should have been achieved way back when people were paying ridiculously high prices for your average home. Now that interest rates are uncertain, boom is over, the prices are realigning to more realistic price ranges….no great mystery I would suspect.
As for investor being fearful…..what of? Clearance sales?????? Any real long term property investor will know, that this is a temporary thing, and property moves in cycles, so as someone else pointed, it is just a matter of sitting it out.
What’s to fear????????
Jo
Originally posted by Monopoly:What’s to fear????????
Jo
The only thing I fear is media generated hype. [weird]
Hi Newgen
I noticed that you are in Sydney.
I just wonder what people in Perth think of the Perth property market at present. Perth seems to lag behing Sydney and Melbourne with these cycles. I have read a few headlines myself but I’m always interested in picking other people’s brains.
I can offer some anecdotal evidence for what it’s worth. I spoke to one RE agent in Perth last week who said the market is slowing. I went through a number of homes open today though (north of the river in Perth) and there seemed to be a reasonable amount of of traffic through those places and I can’t say that I’ve seen a huge amount of “for sale” signs. Most have “sold” or “under offer” stickers on them. Like I said – this is just some anecdotal evidence. What does everyone else think??
Regards
YarwoodOriginally posted by NEWGEN:Originally posted by Monopoly:What’s to fear????????
Jo
The only thing I fear is media generated hype. [weird]
But wouldn’t the Media generated hype be a good thing for us poor investors, hey the prices come down and we purchase at a better price.
Don’t know about the ‘greedy’. Most people purchase with a purpose, that is for financial security and are in it for the long term. That is sensible and looking to the future. If you did your homework, bought wisely, have rents coming in, maybe a mix of +cf and -cf, I can’t see a problem.
Maybe there aren’t as many people looking (NSW?) but there are still opportunities. Went to two open houses yesterday…
Always looking.
Anna…prices are dropping because the greedy thought they were going to make a killing and get rich over night.I only want to answer to the above statement, and not to validity of the market assessment.
Whoever thinks that profits are wrong, that quick profits are even worst, that someone doing it big does so because of greed, if any of you looks with envy the high flyer, waiting with glee for him to fall and start chanting I knew it, that person must reconsider his belief system , because it is not serving him.
Your belief system is what makes you take decisions. If you are convinced rich people are evil doers, you will never go past mediocrity. Your subconscious will make sure you never become such evil success story like all those evil people like Packer, or Gates. I must say that you cannot be in two places at once. You are either a victim, relishing from those stories of greedy people who go down, or a victor that celebrates other people’s success. You choose.
May God bless you
and prosper you.
MarcHere’s another way to think about it….
Money has no taint whatsoever.
It’s not how much you have, it’s how you use it.
Only if you have millions of dollars can you can give millions to charities.
Cheers,
Aceyducey
[/quote]
But wouldn’t the Media generated hype be a good thing for us poor investors, hey the prices come down and we purchase at a better price.
[/quote]That’s definitely one of the good points. What I meant with the comment was just how the media has been publishing crazy articles with statements from ‘experts’ such as housing prices not appreciating for the next 10 years for example. It just freaks me out how someone can say something so general and in my mind.. impossible and have it published, being confident that what they say will eventuate. There are just so many factors which influence this and so much can happen in 10 yrs [jerry]
Ace Acey!
Money has no taint whatsoever.It’s not how much you have, it’s how you use it.
Only if you have millions of dollars can you can give millions to charities.
I like this, it is going on my motivation wall.[specool]
lifexperience
Q: What’s the definition of greedy?
A: Someone who has done whatI have done, but I’m not greedy- they are.
Q: What’s the definition of stupid?
A: Someone who has done what I might have done, but I got away with it- by luck. They are stupid, but I’m not.
Q: What’s the definition of someone moral, wonderful and generous?
A: Me, of course!![biggrin]
kay henry
Originally posted by yarwood:Hi Newgen
I noticed that you are in Sydney.
I just wonder what people in Perth think of the Perth property market at present. Perth seems to lag behing Sydney and Melbourne with these cycles. I have read a few headlines myself but I’m always interested in picking other people’s brains.
I can offer some anecdotal evidence for what it’s worth. I spoke to one RE agent in Perth last week who said the market is slowing. I went through a number of homes open today though (north of the river in Perth) and there seemed to be a reasonable amount of of traffic through those places and I can’t say that I’ve seen a huge amount of “for sale” signs. Most have “sold” or “under offer” stickers on them. Like I said – this is just some anecdotal evidence. What does everyone else think??
Regards
YarwoodIm originally from Perth, and I think that is probably the best place to be picking up property in OZ at the moment. 2 bedroom apartment, 4.5km from the city in Wembley for 115k!!! Try doing that in Sydney! Perth can only duplicate sydney prices long term, put it this way prices arent going down in Perth! Buy Buy Buy! [cap] My two real estate agents in Perth think things will slow down but not stop in Perth. Prices are still on the way up… [suave2]
Hi Devil,
I wouldn’t touch the units in Wembley with a barge pole. There are som many of them and there is no unique or WOW factor to accelarate their growth.
I know of people who have owned units in the area and have made no money over a long period of time.
The availability of future and long term tenants would have to be questionnable as Edith Cowan University has moved its campus out to Joondalup and as such the tenant pool took a major hammering.
There are better investments in Perth – get another REA.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Derek
ECU splitting Courses between Mt Lawley and Joondalup Campus, Churchlands will be empty supposedly be 2007, the land turned into housing estates.
Joondalup ‘and’ Mt Lawley Campuses will be Growing
Yarwood
Re Perth, i’ve noticed more properties for sale, and prices ‘dropping’ on several iu know off about $10K, in my local areas i’ve noticed in the last 12 months lots of Reno’s and Additions to houses..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHad lunch with a Liquidator last week and he mentioned that building contractors are fast becoming his biggest clients.
During Sydneys Boom a lot of them acquired new Vehicles & plant and put on staff to give them the capacity to meet demand. The Develupas (hope I pronounced that right…) are slowing down and their payments are slowing down with them, even where work is ongoing.
Advice is pay out the staff or the unions will never let you back in, and drop the company.
Should be interested viewing.
Hope China dosn’t slow its economy too much, cause we are going to need the mineral boom to keep our economy ticking ahead
Interesting comments but back on the point at hand – the market has changed so are you brave eneough to to enter and where is your best bet … ?
Hi,
Have just read this post, and would like to make a comment.
After putting together a small portfolios of 6 IP’s in the last four years,in the last quarter of last year amid a lot of uncertainty re property investing, I decided to it was time to sit on my portfolio for a couple of years and play a wait and see game.Property investing had been very good to me, but I could see the cycle changing and prices had reached a point where I could no longer sustain my guiding principle in investing,that is: ” THE PROFIT IS IN THE BUYING”
Instincts told me there were better opportunities else where for medium term future investing.So, I placed money that would otherwise have been used in financing the next property in the share market and proceeded to immerse my self in the world of the ASX.
Well, how wrong I was.That 2 year hiatus from property investing lasted 6 months. Recently,I noticed a 3 bedroom house in a bayside suburb listed for $199k.I thought it would have to be dump for that, but as it located not far from where I live, I drove past and was suprised how good it was and so close to beach.I immediately rang the agent, discovered it was a deseased estate and the relo’s were selling out quickly.
Any way I offered 170k by email that day and asked that agent not to ring back unless it was to say the offer was accepted.That night I owned my seventh property. What a shock! This deal could probally be flipped, but at this price I will offer cheaper than usual rent and sit on it for ever.I have already made money on this one.
So I am back in the market, ( i’ll keep the shares, but stop buying until the world calms down a bit.)I believe now is a great time to hunt out those bargains that are being sold by the pessimists and intend to up the ante in the next 12 months. As for interest rates rising, well I would prefer they didn’t , but one has to take the longer term view with real estate. My great capital gains over the last few years will help sustain some knocks in the next year or two.
Bye,
HulaGood for you Hula.
Persistence is the name of the game.May God bless you
and prosper you.
Marc
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