With the hype in the media lately of declining prop prices and interest rates rising how confident are you or your friends of investing …
resiwealth
A bit spooked. Still you only make a loss if you sell. Or, you could buy todays blue chips like Ansett and T2. Oh, they’re gone. At least the bricks & mortar are still standing on my land.
Still, I had already booked a RE agent coming today to value & rent appraise my PPOR.
I was under the impression things may start heading up next year.
Funny, the finance reports on TV last night about the Reserve Bank leaving rates on hold for the rest of the year and into next year subject to: Fuel price increases, wage blowouts. No mention of property or debt levels.Since our properties are in WA, not really nervous at all. Just cautious and keeping expectations for CG real. Currently looking for our 2nd IP with a higher rental yeild that the 1st. Also have recently gone with fixed interest rates on PPOR (50/50) and IP(100%). Will go 100% fixed if/when we find our next IP.
As a new starter in property investing, I’m always nervous – more negative media hype isn’t going to change that!
I always remind myself that years ago there were many who thought that property investing was a very bad idea and now say, if only we’d bought back then!
We’ll probably say the same thing in years to come about now!
Just my thoughts.
EmjoyNo…R U ???
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI’m not nervous at all. Actually purchased a property yesterday after the media hype. its all about your own due diligence and the time you put ensure ing the property “stacks up”. i am still in the market for at least one more maybe 2 more before Christmas. I am in Coffs Harbour NSW and i always invest locally.
Kelvin J Brennan
No need to be nervous…….unless your heavily geared.
Emjoy is right
“I always remind myself that years ago there were many who thought that property investing was a very bad idea and now say, if only we’d bought back then!”
BUT, if you go back just a few months before that, when property prices where out of control, the repercussions of that was enormous.
Mortgagee auctions all over the place.
Now that’s the time to invest…no competition.
And we did……2 properties…cash
So how much did they drop?
For example one property was…
Purchased 13 years ago $1.2 mil
sold at mortgagee auction 360k
(By the way…under the theory “property just keeps going UP” ….they also lost their home)
value today after 13 years $1.5 mil
Would you be upset if 13 years ago you had bought a property for 1.2 and today its worth 1.5?
Whats 1.2 worth in todays money?
Paid far to much in the first place, but eventually the price came back.
It always does……
How patient are you?
How wealthy are you?
Market corrections are an inevitable part of the property market.
There are always winners and losers.
its all to do with timing.
How’s your timing?
I don’t know what’s going to happen…..
but just in case, one property has been sold.
Cashed up again …..lets enjoy the ride.
hbG’day all,
A few years back I didn’t gear enough. At the time it felt safe.
Just investing into one property at a time.
Slow but shaw.
Now I realize that I was too cautious. I felt that this was a major error on my part.
I had the equity, some cash doing nothing, but I decided to be cautious.
My mistake.
By jumping in then, my wealth would be double to what it is now.
So I’m going for broke.
I’m searching out in the Quakers Hills district.
The yield in this area is approx.4%.
Which supprised me. I had expected the yield to be lower.bruham.
I had a conversation with a good mate of mine tonite. He has always been negative towards property – too many hassles with tenants etc.
Now he reckons he has nearly paid of his home and now he wans to invest in property in a few yrs time.
Now I am worried. That makes me nervous. Everyone wants in. Gotta crash before it gets better again.
hi resi
With the hype in the media lately of declining prop prices and interest rates rising how confident are you or your friends of investing
couple of thing.
1.not sure about you but the rates haven’t moved.
2.prop pricing it depend what range you are looking at if you look at the 80k range there has not been any movement and if you look at the 6 mil and up again no movement ( maybe a little up) and if you look at the commercial market again no move ment down it is up.
3.I have heard lots of gloom but have you heard more then me that macquarie, lend lease, babcock and brown or smorgon family are worried about the above statement I think not.just remember that there a couple of reasons for hype as you put it.
1. to sell papers bad news sells better then good.
2.financial gain by talking a market up if you want to sell or down if you want to buy.
3.ratings
I hate the pope will they are doing the Australian idol will get you a couple of minutes
of air space
4 people who are not sure what a market is doing or going, can’t read a market and try to make an infornmed opinion that they don’t have much understanding about.It is very interesting looking at the people who get into a market well before the rest of the investing market and that not just real estate and leave when they want they are not governed by media hype as they drive the media in some form or other and yes i may not like to be herded along with the information that you are following I look at the market and research that market that I wish to invest in and some times it can take along time to do and if it doesn’t work out then move to the next so in answer to your question yes I am confident in my investing vehicle and have recommended investing in a couple of areas of the real estate market.
I have yet to see one of the people who is saying that this will do this and that will do that say and I have sold all my properties and have put it in this westpac account until the market inproves
because i would say thats not a sophisticated investor and should be selling westpac bank accounts.
I’m not employed or work for westpac.here to help
Hi Dazz … no I don’t think so but after being through a rough time in 1990 – 1994 one becomes a little more careful. Luckerly I have sold all my development stock and will have all the money in by june 30 06.
I believe in the lower end stock as bread and butter 4 me and my group although I am working on a 300mil site in the whitsundays for the near future.
I think that demand in this lower end will not deminish.
I think that the building prices are also about to go for another rise because of the building labour costs rising.
I think that we are in for a shock over the next 6 months that unless we get some serious rain rural towns will be closed down. Several shires in QLD r saying they only have 6mths of water left. What effect will this have???
The new regulations with water retention and detention are adding 30k for a single storey house and 50k for a two storey house in SYD, so how can you factor this onto the cost or value of a new property is beyond me … big problem for first home owners!!!
In summary I am thinking that I will be crossing my t’s and dotting my i’s with extra research before I jump in – however i still favour property over shares and love duplexes and small multipurpose sites as great money spinners.
resiwealth[exhappy]
Hi All,
Not at all nervous. All my properties are in WA and all showing excellent growth at the moment.My worst property went up 18% last year and I expect the worse performing this year to be 15%.
My only problem is that banks are hesitant to lend me $$$ cos i have hit my serviceablity limit…. DAMN BANKS!! In my opinion, WA has at least 5 years of good growth ahead before slowing down and at that point I will be looking at the Eastern States. Traditional WA is 3-5 years behind NSW & Vic in terms of boom/ bust.
Always on the hunt!!
Prakman
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