Kylie,
What areas are you investing in at the moment?
You mentioned you are building a few is that the house/land packages or are you finding your own land then building?
Paul
Investing in QLD- Upper Coomera, Ormeau, Beenleigh, Mt Gravatt, Banyo, Geebung, and Bowen, Proserpine
Buy large parcel of land subdivide then build house/ land packages on
Or buy in bulk 5- 10 blocks off a developer, so get a better land rate, and then also tender to builders to build 5 or 10 at once so better economies of scale
Of corse you can still make sizable profits the further up in the food chain you go, But your talking about multi million dollar outlays, Millions of western people starved, and the majority of people lived in great poverty during the great depression, But that didn't stop the rothchilds and other elite familys multiplying there fortunes time and time again did it ?
Just because houses have sold for 50+ million and others develope 10 houses at once dosent mean that for the majority, that things are prosperous
You might be making hundreds of thousands on your house developement but what about the people working on those job sites for $700 a week struggling to pay rent and fuel, are they just as well off, or do they have the same opportunitys as you ?
I think you will find that these people would default on there first house let alone buying 15
There used to be a time when anyone with a job could buy themselves a house and create there own australian dream, now that dream is only reserved for doctors, lawyers and people working in the mines
Note: No, Im not a communist, So don't even think about calling me one, Nor am I any other kind of socalist so please refrain from false comments
We all have opportunities and I started from nothing working at Mcs since 14, then starting with a block of land at Blacktown, when I was 18. I came from a very poor Irish dairy family background where both of my grandparents and parents were forced to leave the country for opportunities, and came to OZ, I have watched my family struggle, and my grandparents told me to study and work hard and look for opportunities in the land so I did.
It has taken me over 15 years of working 6 days per week to get to the level to build homes, split up land, and learn from the ground up. I employ up to 15 people they are all happy, been with me over 10 years, get decent wages, flexi time, family time, parent time, free gym membership, cash bonuses, profit share on jobs and I supply breakfast for free, xmas pressies, give a fortune to charities such as RSPCA, Drugarm, city mission, Salvation Army.
So no I dont feel guilty for what I have achieved, if I shut up shop tomorrow and did nothing it effectively puts people out of work, builders, ATO employees, tilers, plasterers, electricians, solicitors, accountants, book keepers, receptionists, gardeners
I dont call people anything, and dont believe in criticising people or their belief, religion, race, age or anything or ideas, so I shall not engage in any kind of comments.
Most of my friends in property we have started from nothing, worked hard, long hours, saved, took risks, struggled with banks, agents, interest, wage increases, battle with ATO to get some clear guidance, stress.
Really I do think many people have opportunities in front of them, but choose to sit back and do nothing, cant make decisions, afraid, dont have family support, have never been really poor and have had to work hard to survive, and many only want to work 9- 5pm and are happy doing this. Each to their own, but our country paved with golden opportunities but many cannot see them.
Every one can start off small in some way and just keep building up and as they build up more they can find different opportunties. I have seen our families and many come to OZ with nothing, minimal $$ or no english, but they have gone in search of opportunity, worked hard and found it.
I know it is still possible to buy houses cheap in certain areas and fix them up a little, so owning a house is not just for the elite- there are many areas where people can still buy something for under $200k but many people today want everything at once instead of building up gradually, or to live in certain zones/ areas.
I see it all the time with houses I build and sell, a young couple or family will come to look and many want the media room, 240 m2, rendered, ducted aircond that they cannot afford, they should be starting off smaller, and more manageable, and a few years down the track getting the larger home they wish for after they earn/ save more. Often I try to show them also the more affordable options we build, but many do not want the nice basic standard home and prefer to get themselves into major debt.
I think opportunities are there for most people, but maybe what is lacking is property education, support, guidance, or peoples ability to work together as a team or family unit to try to get ahead. I see many people working together in a small way on opportunities- a few brothers doing a renovation, or a family with other relatives building a house to sell, or a group of friends getting together to build townhouses, you just have to find the opportunity, seek out knowledge and if you cant do it yourself, then maybe team up with someone to do things together to get a little start.
Thanks
Found that last post quite inspiring. But with three young kids, I'm afraid to take risks. Still, we've managed to get 3 IPs and doing OK. Lucky to have got in when we did.
Meanwhile there are so many RE promoters continuing to ride the boom wave long after the boom has ended…..but I wonder if the numbers attending those seminars and buying those books are dropping. Surely they've made enough money by now….it's truly pitiful the way some of these gurus are still trying to squeeze out a buck from the ever-optimists or chronic procrastinatators who've well and truly missed the boom boat.But I agree there's money to be made in any market. Finding the time to find that increasingly elusive niche (and then pursue it) is the problem! Good on you Kylie. I hope your success hasn't come at too high a personal price because if you've managed that challenging work/life balance then your achievements really are impressive.
And I agree with you – teamwork is sorely lacking when people complain that they can't get ahead.
thanks for sharing your story.
Carlin
Sup guys,
I’m a noob to property investing. Aren’t there still pockets that are showing high capital growth? The thing that concerns me, and I don’t totally understand are the comments about property being so high compared to 2000…
Our economy has gone up, that explains the rapid growth is house prices. Don’t house and living standards go up by 3% every year?
When the house prices drop due to a failed economy as many are suggesting and that being the time to buy… what about all the people who are going to surge at the chance to own their own property? Interest rates will drop, allowing a greater % of the population to afford buying their own place. Following this line of thought doesn’t that imply a percentage drop in renters? To me this would suggest that the majority of renters left are the people who are jobless, or living on the dole. Not scorning that in any way, however a majority of these people are not considered the best type of tenant to have.
I don’t want to be blasted. But I’d like to know your thoughts on this theory.
Kind regards,
Nikki
I still remember around the year 2000, maybe a little before that when you could buy a house for 120 000, and lots of people where earning 40-50k a year, If you saved up hard for a few years you could go buy yourself a house, stop paying rent and you would be well off.
Now days houses are 300k+ and most peoples wages would barley cover the repayments, You will find the majority of home loans have 2 incomes supporting it, and they are still struggling.
When prices do eventually crash you will find most people won't have the ability to borrow to purchase a property, the bargins will fall into the hands of people who already own many houses, not the people who just want to have a home.
BusinessGolbal, I commend you greatly for your own personal success, going from nothing to something and I know it would not have been easy, But im just trying to make the point that the people at the bottom right now are in a worse position to become prosperous then any other time since the 30's and I think things will become a lot harder as 2009 roles around.
The world has been gorging on this huge equity boom for decades, and now the time has come for someone to pay for it all, and for some reason I don't think it will be the billionaires who will suffer.
Yes things are always difficult any time for people starting out, or trying to buy a home, or another property but the key is to start, start small, and affordable and build up along the way, and make sacrifices- I used to ride my bike, walk, take my lunch to work, buy fruit/ veges at wholesalers/ markets, wait til all the sales for clothes/ shoes, go to basic hairdressers for a cut, not have fancy nails- too many people are wasting money on things that their money is better directed elsewhere, or instead of going on fancy holidays, go camping, or stay in cabins. On a daily basis I see people wasting money on extravagence and then saying they cant afford to pay their house or car, but still eating out a few nights a week, getting hair/ nails done, and driving expensive cars.
Yes I am very concerned for the current situation, and especially people that cant afford rents any more that have health issues, mental issues, injuries that prevent them from working, aged. I do a lot of charity work and help the street vans deliver food, clothing, soup, fruit to homeless, and it is impossible for many to escape this vicious cycle as basic rent anywhere is $200 a week for a small flat/ studio, and if someone is only eligible for $200 per week Centrelink- how can they survive?.
Some solutions I guess if our gvt had a correct property strategy for the community would maybe be divert some of the money we pay in capital gains tax, stamp duty, land tax, toward low cost housing, helping homeless, affordable loans for people to start off.
Lately I have been watching a lot of the asian/ greek communities and what they do and how they get a start- many of the families buy a large home and live together, pooling wages, labour, food, tasks, and as they build up they buy another property and rent it out, and pay it off, and they keep going on this strategy- all working together, helping each other. Kids live with parents, and even when married live with the family in a large house or with a flat out the back, til the younger ones save up, get ahead.
Someone mentioned GOLD- well Im checking out gold next week, and getting my super out of shares and going toward gold, as dont feel very confident in our banking or sharemarket systems at all for super or savings, and especially as our currency is not really secured against anything,and no gvt guarantees in place for our savings either- so Im following the chinese on this one and going back to basics GOLD.
Area to buy that are affordable- Beenleigh, Eaglby, Mt Warren Park, Central Coast NSW- ( good buying there now/ bargains about), Bega, Glen Innes, Tenterfield, Gympie, Childers, Logan Central, Goodna, Ipswich, Carole Park.
Some ideas- South Australia- Whyalla, Port Pirie
Tasmania – some parts very affordableInterested in what people have to say about affordable areas, and how to help people survive that are starting out, or not able to work/ earn money that are in a very difficult housing situation now with rents/ living costs
Bye
I don't want to sound hypocritical to my previous posts but Silver bullion bars might be a better alternative to safehousing your purchasing power then gold
1: Silver is worth less then gold and is thus more practical as a form of money
2: Silver is used in many industrial processes, which makes it a manufacturing commodity
3: To my knowledge, If you purchase gold in Australia you have to register your gold with the government, So they always know you have it
4: In the 1920's the government banned ownership of gold and bought it back at an undervalued price, $22 ounce if I remember correctly, If economically things get really bad and we see bank runs ect, its very likley the government will force you to give up your gold to "Save" the country. Does anyone still remember when the government disarmed the people only a few years back with the new gun control act?
5: Silver is currently severely undervalued at the moment, When the stock market is booming it pushes commodity and precious metals down, subsequently when the stocks fail and people realise the stocks worth is as valuable as the paper there written on, commoditys and metals will no longer be suppressed, $30+ an ounce for silver won't be surprising in 2009
But I don't want you to just take my word for it, Do your own private research, These matters are not as confusing as investment "experts" would try to make you believe.
If for some reason guarding your own purchasing power in a safe seems more riskier then holding all your faith in a bank that might go into liquidation, You could look into opening a swiss bank account, From my knowledge they have the best chances of security within the banking system.
Just for people who don't know currently in Australia if a bank goes bust there is no government guarantee to any of your money, You can read on http://www.news.com.au how Kevin Rudd is talking about a bill to guarantee $20 000 if a bank fails here, Does he know something we dont know yet ?
Also for people who disbelieve there could be any bank troubles in Australia, Queenslands bank suncorp is in a serious position at the moment with profit margins, They are being forced to sell up assests and slash 1500 jobs, It looks as if they will be bought out by NAB.
http://www.news.com.au/story/0,,24443265-421,00.html
HI Kylie good to hear a sane voice.
Six months pass very quickly. I personally will wager an ounce of gold that it will not hit $1500 [we're talking USD I assume]
There you go – an easy $1500 if you dare back your convictions. If it doesn't can I collect $1500?
Gold has a transaction price, just like any other investment. The holding cost robs it of any shine. Buy gold bars & you soon discover you have to pay for its storage. 15 years ago, I wanted to buy 1kg gold bar @USD300 per ounce
I invested in stocks instead. Around 16.5% across 5 years & used that to buy a house & that started my property investment. I can actually compare what'd have happened had I held gold instead.
Strangely though, someone did mention that silver holds potential. Interesting if someone can keep us posted as the months unfold. I'll be monitoring the price of gold. I might have to pay out $1500!
Have a safe holiday,
KYI guess it comes down to two possible outcomes.
One leaves us in a collapse of things as we know them and the other is that this is another one of lifes bumpy sections and things will work themselves out given a bit of time.
Now we can believe we are on the eve ov a world wide collapse as we know it and dissapear for the hills or you can take some risk and protect yourself in the short term but prepare for future oppertunities that could be just around the corner.
If you take a risk via investing and things collapse then to be honest you will not be far behind everyone else. We will all be in it together to some degree.
Or if your risk pays off you will be ahead of the pack as they are still lying in there bunkers waiting for the sky to fall.
Looking back through past history and looking at all the information in front of me. I still believe property will be a smart long term move to financial independance. This current crisis will become history eventually and a new one will take its place with the potential to end things as we know it once again. One thing for certain is this period right now will be a time when the next generation of rich people laid the foundation of there wealth building . I hope to get in on some of that.
devo76 wrote:Looking back through past history and looking at all the information in front of me. I still believe property will be a smart long term move to financial independance. This current crisis will become history eventually and a new one will take its place with the potential to end things as we know it once again. One thing for certain is this period right now will be a time when the next generation of rich people laid the foundation of there wealth building . I hope to get in on some of that.That said….noone has really answered the question….
Everyone says the bubble will burst, but why?
As the price goes down, supply decreases (this is happening…. the price is dropping 1-2% and the amount of new homes on the market is drying up. Therefore….the price stays relatively stable….
If the price goes up, then supply will increase…. and the price will again stay stable.
Things have to happen to shift the aggregate supply/demand curve.
I.E
Interest rates dropping could increase demand……
High unemployment could increase supply….
Without something happening to shift the supply curve, then the bubble will not 'burst'….. there may be some movement along the curve though.
I for one am probably going to buy now….in a place I want to live. Long term I think it will still be a wise investment. I am not after
short term glory. As has been said. If I do own a home, and a mortgage, I will not be the only one.hbbehrendorff wrote:I don't want to sound hypocritical to my previous posts but Silver bullion bars might be a better alternative to safehousing your purchasing power then goldHahaha, trying to flog your silver bars in a property forum. So what happened, did your silver bars crashed AND found out that they don't produce any yield ? If you didn't like property should have left your money in the bank instead, at least you'd be getting all of it back plus some interest for your trouble. Now you are left with something that can only be used as door stoppers, at least until the next time there is panic and rednecks decide to head for the hills loaded with baked beans and silver.
wallyt99 wrote:That said….noone has really answered the question….Everyone says the bubble will burst, but why?
Because current house prices are unsustainable, individual's debt levels are too high, assets are no longer making the capital gains they were 7 years ago and many mortgagees are running out of time to be productive memners of the workforce.
wallyt99 wrote:As the price goes down, supply decreases (this is happening…. the price is dropping 1-2% and the amount of new homes on the market is drying up. Therefore….the price stays relatively stable….If the price goes up, then supply will increase…. and the price will again stay stable.
Things have to happen to shift the aggregate supply/demand curve.
I.E
Interest rates dropping could increase demand……
High unemployment could increase supply….
Without something happening to shift the supply curve, then the bubble will not 'burst'….. there may be some movement along the curve though.
I for one am probably going to buy now….in a place I want to live. Long term I think it will still be a wise investment. I am not after
short term glory. As has been said. If I do own a home, and a mortgage, I will not be the only one.Governements are working to increase supply, finally waking up to the fact that, although restricting it increases the amount of taxes they can procure and keeps their peers happy, the future is looking increasingly bleak.
Buy now, you'll only loose short term. Long term you'll still be in front. Any single property owner who brought at the peak currently has an asset 5-15% less than what they paid for it but it is still most sensible for them to hold onto it. Long term it will increase in value again and better to suffer short term loss and hardship than to sell at a loss and owe the bank some money for nothing at all. When you buy, fight hard for the best price on the biggest piece of land you can aquire. REAs in Australia are yet to learn that the foreseeable future is about the buyer and not the vendor – but they will within the next 12 months I'd wager.
The age old question ATM . Been asking it myself for mths .
I've come to the conclusion that no one knows , been amazed at even the totally opposite views with even the experts so you have to tell yourself .
Here's my solution .
Look at your area – what's it doing and why . If it's stagnating then the next move with everything else going on is likely to be down .
So work out where you think down is gonna be and for how long and buy only if you can get it at whatever you think the bottoming is going to be and make sure it's got plenty of built in options as backup.
If an area is moving then find out why and if the why is waring thin , has it started to decline – is it likely too and all the reasons in whatever is going on with it . I'm finding locals that aren't selling something are great for the real picture.And then there's the obvious as back up. Our property is way over priced , it's the dearest in the world of it's class plus we have had a massive boom – so there is a pretty good chance she's got some serious correcting coming from that alone but then there's everything else that's going on well.
My new theory is allow for all of the above and when you find something that covers your butt go for your life , if not wait 12 mths.
CheersWell I could go on to explain why this happens for many pages but I don't have the time at the moment, But the fact is that every bubble bursts, Thats just how it works.
If you really want to explain it in a short and crude sentence, Bubbles burst because people get to a point where they just can't keep buying things or increasing there debt any longer, people have a habbit of going as far as they can, right to the edge of the cliff so to speak, People start falling off and the ones that are not are struggling to stay on.
It is at this point that the bs stops and things start to unwind, Once the spring has been contracted so far it will shoot back in the opposite direction, Once that happens you can't just stop it and start pushing it down further again, you have to let it completely run its course before you can start again.
harb wrote:hbbehrendorff wrote:I don't want to sound hypocritical to my previous posts but Silver bullion bars might be a better alternative to safehousing your purchasing power then goldHahaha, trying to flog your silver bars in a property forum. So what happened, did your silver bars crashed AND found out that they don't produce any yield ? If you didn't like property should have left your money in the bank instead, at least you'd be getting all of it back plus some interest for your trouble. Now you are left with something that can only be used as door stoppers, at least until the next time there is panic and rednecks decide to head for the hills loaded with baked beans and silver.
Precious metals have been used as money since the start of time, they held value thousands of years ago and a few kg's of gold has the same value of a house, I would be interested if you know of any better ways of guaranteed safeguarding of purchasing power in a smaller package, please tell us!
Gold and Siliver has stood the test of time, Tell me one fiat currency which has done the same ?
According to my knowledge every single paper money in the history of the world has eventually lost ALL its value and become nothing more then what it really is, Paper.
Though im sure im wrong again, i will await your response as to which PAPER currency's have lasted throughout the ages.
ummester wrote:Because current house prices are unsustainable,Could you please explain why do you think that prices are unsustainable ? I keep hearing this phrase thrown around and I'd like to understand why. Is there a infinite freeze on wages or has inflation been banished forever in this country and I haven't heard about it ? Maybe there is a law that says the average house price to wages ratio has to be no higher then 4 to1 ? The price rises may not be sustainable for the moment because of the credit crunch but that's a different story and only temporary.
hbbehrendorff wrote:Precious metals have been used as money since the start of time,Actually it was probably sea shells, maybe we should collect them as well ? After all they are as useful and more interesting then a bar of gold or silver.
Quote:they held value thousands of years ago and a few kg's of gold has the same value of a house, I would be interested if you know of any better ways of guaranteed safeguarding of purchasing power in a smaller package, please tell us!A bit hard to protect yourself from rain using a gold bar. How would your gold bar do against a tin of baked beans if the economy collapsed and the scenario that you're buying the gold bar as protection against would actually arrive ?
Quote:Gold and Siliver has stood the test of time, Tell me one fiat currency which has done the same ?Maybe in the times when gold was used to mint coins. These days its just a crutch for insecure people and if the chips were down your gold bar would be just as useful as a lead bar. But hey, its all about keeping up appearance isn't it.
Quote:Though im sure im wrong again, i will await your response as to which PAPER currency's have lasted throughout the ages.No, you are right. If holding gold makes you feel more secure and helps you sleep at night then who am I to say you are wrong. Hoard all the gold you can and good luck to you however if the system fails and currency becomes useless then I don't believe you'll have much use for your bars. Personally I'd rather hold a nice piece of land and if things went bad maybe a few fruit trees, building tools, water purification pills, some fishing gear, etc. Makes more sense then heading for the hills with couple of inedible gold bricks in your backpack. After all, I could swap you a bottle of water for one of your gold bars OR I could wait a few days and just pick it up from your backpack after you died of thirst. Do you see my point ?
hbbehrendorff wrote:Well I could go on to explain why this happens for many pages but I don't have the time at the moment, But the fact is that every bubble bursts, Thats just how it works.If you really want to explain it in a short and crude sentence, Bubbles burst because people get to a point where they just can't keep buying things or increasing there debt any longer, people have a habbit of going as far as they can, right to the edge of the cliff so to speak, People start falling off and the ones that are not are struggling to stay on.
It is at this point that the bs stops and things start to unwind, Once the spring has been contracted so far it will shoot back in the opposite direction, Once that happens you can't just stop it and start pushing it down further again, you have to let it completely run its course before you can start again.
Sounds wonderful in theory and I'm sure you could come up with formulas to prove your point , too bad life doesn't work this way and people sometimes make irrational decisions.
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