The world is faced with so many problems. Housing boom in the inner Melbourne, people paying million to be a small property while big land at the outer side of Melbourne are faced with low demand.
A wide gap and confuse.
wealth4life.com wrote:So who is to blame "the banks" or "greed"Our parents lived in 3 bedroom homes when they started ….etc
D, you are probably right with your comment.
I am interested only in one small passage in your post, the mention of the word "greed".Now when I read the word greed in a newspaper, particularly the one with small pages, I realize they are trying to sell more newspapers to their audience, and the same goes for TV like a current affair and ABC news for example.
Yet divesting oneself from political convictions, I would like to know how can "greed" be defined in a business environment.
Or in other words, how can you say "I will not buy more of this shares (at bargain price) or I will be too greedy. (?)Do we use the concept of greed for ourselves as a way to justify minimization of risk and for others to blame them for the harm to the market their profit making has done ( and we missed out) or to blame them for their own demise if the strategy failed?
When is it greed and when is it maximization of profits?
It's started long time ago and still getting worse:
THE number of Queensland homes being repossessed has skyrocketed, with families now losing their properties at a record rate.
Data from the Queensland courts show a total of 756 homes have been repossessed so far this year because homeowners could not meet their mortgage repayments.
That number has steadily climbed over the past three years.
A total of 484 properties were repossessed in 2004, 869 in 2005 and 910 in 2006.
http://www.news.com.au/business/story/0,23636,22470647-462,00.html
Yes I agree and I believe the whole Queensland market is fueled by property marketing companies selling to mum and dad investors and getting paid 40,000.00 commissions.
SEQ is a rental pitt … stupid people should be buying 1 year old properties for 50,000 cheaper … houses are selling for 380k and renting for 300p/wk … go figure …
D
alot of negative feeling here….
anyway I think its not all gloom and doom.
I'm 24 earn a wage of 40k gross per year and own 3 IP in Brisbane – and i think the market rewards people who have a go.
I've also done this with liitle cash of my own.
Am I struggling with recent interest rate rises?? YES
Was i going to sell up and give up?? NO
What did I do???
1. I went out and got a 2nd job –
2. I got another flatmate to share with me .I'm not sure most people would do this , but it was the difference between me sinking or staying afloat and riding the storm out, in fact it helped me to save a deposit for my 4th property.
cheers seank
wealth4life.com wrote:Yes I agree and I believe the whole Queensland market is fueled by property marketing companies selling to mum and dad investors and getting paid 40,000.00 commissions.SEQ is a rental pitt … stupid people should be buying 1 year old properties for 50,000 cheaper … houses are selling for 380k and renting for 300p/wk … go figure …
D
The Queensland market is being fueled by 1800 people each and every week moving to QLD. Not to mention fabulous weather and enormous growth in resources. Add a 30 Billion infrastructure program and you have everything a well educated investor could want. I have two IP,s in Brisbane and are looking for my third. I believe QLD will be the standout performer over the next 10 years. Hell when I retire I'll be joining the crowds and warming my aging bones in the warm QLD sunshine.
Look on the bright side if there was a bust and I dont think there will be then good opportunity to buy, my cousin is madly buying in Florida right now.
I'm with Dreaming Brisbane has all the fundamentals although a bit of rain would help.
Have a look at what my cousin sends me he beleives that Florida right now is a once in a lifetime opportunity and cant understand why I dont come out and get some, so yes we see some bad press about the US but some see it as tremendous opportunity
Buyers Market + Favorable Financing = Money In The Bank!
Real Estate Prices are Down! (Good for Investors, YOU!) The interest rates have dropped for investor financing. The terms are good.
FLORIDA real estate prices have dropped as much as 46% in some markets. Sellers are starting to realize the value is what an able buyer is willing to pay. The value is not what they want and not what they paid. The value is set by what you want to pay. Investors are whiting 5, 10 or more offers each looking for the sellers who are motivated. We are here to help. Understand the MOST MOTIVATED SELLERS have FOR SALE SIGNS in the yard. The unmotivated sellers don’t have signs. WE specialize is liquidating discounted property for Builders, Banks and Motivated Sellers. We have the deals!
click here to view FLORIDA property starting at $80,000.
Dear Investors,
I agree with everything that has been said, all markets have inevitable cycles both boom and crash. However, the downward trends only affect those who react and sell in panic. If your strategy is to stay in for the long term say 30 years then you can guarantee that your property will have significant gains regardless of relatively short term fluctuations in the market.
Kind Regards,
Mark Leith
Property AdvocateGlobal Buyers Agent
GlobalMark wrote:…………If your strategy is to stay in for the long term say 30 years then you can guarantee that your property will have significant gains regardless of relatively short term fluctuations in the market.
Kind Regards,
Mark Leith
Property AdvocateInvestors, nota bene, just buy and hold on to it for 30 years and you will be set, guaranteed.
Now lets see….I am 50 plus 30 = 80 jee looking forward to this remarkable strategy.Dear Wealthforlife,
Downward markets are a part of any market cycle and it only affects those who panic and sell.
If you are in this for the long term then you will see signifigant capital gains.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auDear 1Winner,
30 years was just an example as this is a typical term of a home loan.
If you are 50 years old then your strategy is still the same buy and hold em, you dont make money by simply jumping in and out of the market. The entry and exist costs alone should be enough to detract any sensible person.
My father died at age 62, whilst I hope that you live until you are 100, no one knows their time and place. If I was you I would be seriously considering selling all of your investment properties except your primary residence within the next 10 years as there is no point in being the richest man in the grave.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auI was in manufacturing for 20 years and had my ears full of 'advise' from the supplier's salesman. Even my accountant all of a sudden played the expert in my line of business. My wife's surgery accountant bought a medical center for God sake and crashed it in 2 years.
We all have our talents and expertise in some field or another. I tend to listen to those who are playing the same game I am playing, particularly if they are making good progress.
No offense intended, I am sure you have valuable advise in your own field.F;
that story is a head shaker, and it happens so often it is maddening.
Mistake 1. The guy buys what seems to be a brand-new townhouse? How often does this happen when the price is no doubt the developer's price; not what the market is asking.
Mistsake 2. He starts off at around 6% interest, and when it climbs to a stratospheric 6.71% he is starting to get into trouble? This is laughable – actually; no it's not; it's sad.
My question is; how does the Bank allow this guy to get into the situation in the first place? Once upon a time, it was very hard to get a loan, now it seems they will give you the money whether you can afford it or not, with no consideration for the worst-case scenario of the customer. Another level of poor customer service from the Banks has arrived, people.
Surely they would have had the townhouse valued, in which case it should have shown up as a borderline value for the loan, then they allow him to go for a 90% loan (no doubt there was LMI) on an interest rate that puts him in trouble if it goes up even 1 per cent?
What was the percentage of his income represented by the loan repayments at 6%? If he gets into trouble when the rate rises
.75% then surely it would be at the danger limit of 35% of income when he took out the loan – all Banks know this is traditionally about the cut-off for people's comfort level.The Bank has a lot to answer for here, as well as the guy who bought the property, but, in fairness to him; he may not have a lot of financial knowledge, whereas the Banks; well, that's their expertise. Shameful.
Hi LAA how are you …
The banks make money by lending money … one minute they are shoving it out the door like there is no tomorrow … as soon as the sXXt hits the fan the poor little borrower gets a new lesson in life …
D
Do you think interest rates will go up and effect the market more …
Do you think a change in the Government will effect peoples attitudes …
D
Macq are predicting 3 x 0.25% hikes between now and EOFY!
The government have increased their GDP predictions.
Yes, interest rates will continue to rise (barring some catestrophic event).F. [cowboy2]
Yes all the news points in the same direction "foundation" I wonder if the people out West of the major Cities will handle the stress of an extra 1% rate rise …
D
welth4life, people can take a alot more stress than 1% if increases are gradual. They will change there's jobs' seeking more money, will reduce number of holidays per year and barrow $$$ from parents…. Unless it will be sharp rise in CR, people will tolerate more or less comfortably 2-3% if speared in few years.
RBA working very hard not to stress the people with CR. Gradually rising CR you can get more 'juice" out.
But since a lot of people are overcommited already, the default rate will be rising proportionally with the rise of CR.hmmmmmmmmmmmmmm .. all interesting yak in this forum
1. Look at fin review editorial of today …
2. Look at WA and SA Chamber of min and energy projections ..
3. Imagine 1948 with no replenishing factor …
4. Check out 1340-1360 UK .. london specific …
5. Accept we are not having a drought – we have returned to normality ..
6. Check the basis for the GDP recast – with specific reference to Access Econs recast (gasp .. they appear the same) ..
7 Understand that workfroce $ relativity is still cast on the basis of (pardon me – not my quote) "anglo saxon arrogance" that the only skilled o/sea immigration must conform to aust (UK) training standards and regimes (reference: Royal College of Surgeons, Teachers Reg boards, nurses reg boards etc etc)
8 Understand, the impact of birthrates on all who "won" the second world war
9 Recast projectionsother wise … if ya went to sleep in 1952 with an understanding of the labour market and economy .. and woke up today … how would you (as a Government perhaps – ya lucky dreamy bod
) .. respond?Such is the world of the frog
RobL … how funny and out there are you ?? me thinks u r very good …
Yes swings and round abouts … would love to do a cross section of members on this site it would make a good book Steve ??
Damned if we do and damned if we don't … god i hate property and economics … i can read the past very well but the future flash light is dim … lets have a recession so bring back Paul Keating and vote Peter Fischer in as prime minister and Rod Adler as governor with Brad Cooper as secretary of state. Neil Jenman can head the ASIC oh I can see the team meetings already how about the KP'Is
D
You must be logged in to reply to this topic. If you don't have an account, you can register here.
