I remember in the share boom of the late seventies someone said it was time to get out of the market, when your cab driver starts discussing his portfolio…. held true in this one. In this one it was when our GP closed shop to concentrate on his developments !!!
Any other surefire signs that the market is about to peak.
What’s all this regarding “about to peak”?? It’s already peaked here in Melbourne
Cheers
rThere’s a bargain in every market you just have to be a little more careful. It’s the people who don’t do their homework, buy overpriced and borrow beyond their means that are the first to get hit.
One point of difference with property as opposed to the sharemarket is people still need a roof over their heads. You can batten down the hatches and still weather the storm.
No need for doom and gloom, just prepare yourself for some opportunities.
Cheers
Jeffi have organised my finances, have money ready to go and am battening down the hatches waiting for the storm. when theres blood in the streets i will start buying again.
but thats just me
cheers
shaunLead, Follow or get out of the bloody way
“It’s the people who don’t do their homework, buy overpriced and borrow beyond their means that are the first to get hit.”
The above is the catalyst for a so-called “crash” – which is when many real estate investors accumulate the most wealth.
Unlike the stock market, the real estate market does not crash because it is supported by “tangible” assets [not forecast profit margins] which hold value and always appreciate over time.
Those who do not calculate a market adjustment into the equation – and as importantly an “exit strategy”, before buying property, create opportunities for those who do.
— Michael
Exit strategy is key to all investment plans and is the one important thing that is always over looked by many “investors” or traders.
LoL I bought up a similar topic and a moderator tried to pull the idea apart
When Today Tonight start mentioning the property boom
Any other surefire signs that the market is about to peak.EZ-Rent. The free tax and cashflow simulator for Australian property investors. Version 2 out now!
http://www.ez-rent.comWhen owners of development sites will only sell if they get a premium that includes a slice of the developers margin – without the risk! (I can think of a few guys that really should have taken offers last year!)
Interesting opinion near the front of the current API mag… P11 and P12. The summary is “The investors who have been quietly building their portfolio over the next few years when property is out of fashion will enter the next boom phase with a large portfolio of properties. They’ll watch with delight as high capital growth rates kick in across their already large portfolio, creating a new round of financially independent Australians. Their friends, who followed the herd and only chose to invest in property when was the in thing during heated booms, will enter the next boom owning very few properties. And they’ll wonder how they missed the boat.”
What a great comment!
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
“The investors who have been quietly building their portfolio over the next few years when property is out of fashion will enter the next boom phase with a large portfolio of properties.
They’ll watch with delight as high capital growth rates kick in across their already large portfolio”— this sums up my point “”crash”.. is when many real estate investors accumulate the most wealth.
“I bought up a similar topic [“exit strategy”] and a moderator tried to pull the idea apart”
— I would enjoy going head-to-head with anyone who discounts the value of an “exit strategy”.
It is a primary factor in every reputable financiers decision process.
And it should be the most important factor when considering an investment in not only real estate, but also corporate entities, the stock market, and any other investment vehicle.
Those who discount an “exit strategy” are the most likely candidates for failure.
— Michael
I am aware what a emergency plan is but an exit strategy ???
I wouldn’t mind if someone told us what an exit strategy is.
If things get really bad then, by the time one realises one should be out of the market, there won’t be a buyer in sight. Only ghouls and grave robbers.
Who else can one ofload to in bad times ?
Just lest anyone thinks that things cannot get much worse think again.
Despite all the news about companies making increased profits think again.
Small businesses are suffering.
Taxi drivers are suffering. The price of taxis has come down from some $ 300,000 to $ 236,000 today (and still lower prices reasonably expected).
A friend who has a photodeveloping business catering to tourists has seen his turnover dwindle from $ 1,500 a day to $ 150 a day. He is now talking about walking out of the business i.e. giving the business away for free. A business he could have sold for $ 250,000 a year ago.
Today he is bleeding badly, having to dig deeply into his pocket each month to fund the shortfall.
Look into the shops. They are dead quiet.
Everyone has stopped spending.Everyone is affected.
Where will it end ?
Fire sales ? Suicides ? Hey, here’s an idea.
Any business associated with the funeral business may well be making accellerated profits over the next couple of years.Coffin makers, flower growers, eat your heart out.
Pisces
“I wouldn’t mind if someone told us what an exit strategy is.”
— The process by which an owner or investor liquidates his or her ownership in real estate assets, a business or other venture.
“by the time one realises one should be out of the market, there won’t be a buyer in sight.”
— An exit strategy is formulated prior to investment, i.e. before buying a property. And takes into account worst case scenarios, i.e. rising interest rates, potential zoning issues, market trends.
If any of these factors come into play – as a negative – or are on the horizon, then the investor decides whether to implement the exit strategy or ride it out.
“Who else can one ofload to in bad times?”
— See above. An exit strategy is typically implemented before “bad times” arise.
Every investor has the opportunity to liquidate an investment or adjust to market conditions before the tide turns.
The investor who closely monitors his/her market and understands the negative factors that may affect an investment, will reap financial rewards well beyond passive income.
“Everyone is affected.. Where will it end?”
There is a positive in any market – it is simply a matter of overlooking the negative and focusing on the “opportunities”. Which I might add are far more prevalent when the market is facing a downturn – based on experience.
— Michael
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