I think it depends on what development you’re doing and where it is.
Differant areas in Queensland are different markets.
I know people who have made lots of money in Queensland property and other who have lost.
Either way do your due diligence well and just because the market sentiment may be down or stagnant don’t let it stop you from doing your developments.
Learn, Love, Strive. Make a difference!
Originally posted by dmichie:The great economic success stories of the past 60 years (Germany, Japan and now China) were not created by building houses, they were created with exports. You cannot create wealth by buying and selling houses, real wealth is created by selling something to the rest of the world.
Dmichie
I can see your view point , however by taking that view point , you will not change the way the Australian Property market works.
An alternative view would be to say ” OK I don’t like it , but I can see how to profit from it. I’ll make as much money from the property market as I can , and then I’ll use the money I’ve made to fund the launch , promotion of my wiz bang Computer “
Personally I got sick of busting my guts and getting an ever decreasing income for a fairly stressfull job and at the age of 40 realising I’d have to keep on doing for a many more years. I’m quite happy to make money just for the sake of making money.
See Change
I can see your view point , however by taking that view point , you will not change the way the Australian Property market works.No, the way the Australian Property market works has already changed. The bubble is deflating and we are very unlikely to see much real capital growth (i.e. above inflation) for the next 10 years. So your strategy of buying and holding property may have worked brilliantly for the past 10 years, but its not going to work for the next 10.
You may think our current account and foreign debt problems are irrelevant to your property investment strategy but they’re not. Our housing boom was funded by foreigners because our banks borrowed heavily from overseas. We can no longer afford to do this because our current account deficit now stands at 7.2% of GDP, our net foreign debt is almost 50% of GDP, and global interest rates are rising (esp. in the US) which means the cost of servicing that debt is rising.
See how its all connected?
Originally posted by dmichie:No, the way the Australian Property market works has already changed. The bubble is deflating and we are very unlikely to see much real capital growth (i.e. above inflation) for the next 10 years. So your strategy of buying and holding property may have worked brilliantly for the past 10 years, but its not going to work for the next 10.
dmichie
You’re making an assumption that I’m a buy and hold investor. I’m not.
I had my own particular approach to the market over the last three years.
I’ve worked in Sydneys west for the last 17 years, so I saw first hand what happend during the long down period. I also saw what was happening when prices doubled in places like Mt Duitt over a fraily short period. We were busy doing a subdivision at the other end of the market ( stumbled on to that more by accident ) on our Pymble PPOR but when we finshed that I quickly realised that “cash flow positive ” was the latest buzz word, and those areas were subsequently experiencing very nice capital growth.
So as a result we bought a moderate number of cash flow positive properties ( some weren’t actually cash flow positive – more neutral ) and in the last six months we have sold a bit over half our portfolio. After Capital Gains tax we will potentially own several IP’s outright (we’re puting the money into offest accounts while we work out our next moves ) . These are enough to fund a basic retirement if that’s what we wanted to do. That’s not bad for three years investing. The one’s we’ve kept are returning over 10 %
Because like you I don’t expect significant growth in the property market in the near future we’re looking at investing our money in other areas prior to the property market moving again though I do have my eye on one particular suburb in Sydney
and if I can pick up a couple of real bargains I may buy there in the next 2-3 years.See Change
and if I can pick up a couple of real bargains I may buy there in the next 2-3 years.You must be logged in to reply to this topic. If you don't have an account, you can register here.
