[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

September 24, 2007 - 12:56 pm

Ok I read this post and although I didn't want to get involved in the whole negative- positive+ thing. But I can't help myself.

Everyone's situation in life what ever it may be, is an accumilation of their thoughts, dreams and imagination.
You are what you think, no more no less.

I choose to look on the bright side of things, I believe things will be ok.
But I still make my investment decisions based on research and a little positive attitude.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

September 22, 2007 - 7:27 am

Badgers_R_Us wrote:

Dreaming, it's not necessarily about being negative, it's about being smart and picking the right time in the market to get in, or out if need be. 

Badgers I found your original post very pesamistic, I was just putting my observations forward. See I believe we are in a once in a life time resource boom like no other seen before. China, India are waking giants they want what the rest of us have. They want a nice house a car and a good job.
This resource boom will go on for years and Australia will benefit greatly.
I'm not suggesting for one bit that we won't have a few bumps on the way but every one has to live somewhere, and Australia will increase it's migration numbers 10 fold before the last baby boomer has retired. See the baby boomers aren't going to disappear off the planet when they retire so they will need houses still along with hundreds of thousands of migrants to keep the country ticking along.
But then I've always had a positive attitude to life.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

September 22, 2007 - 12:37 am

I believe that a 3 bed townhouse @350K within 10km of the major CBD's is a better investment option than a 3 bed house on large block @350k some 25km from cbd because of the increasing costs of fuel.
Alernative fuels are definatley going to come online in a big way but I reacon there will be a big time delay between affordabale alternitive fuels and the effect of peak oil on petrol prices.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

September 21, 2007 - 1:49 pm

pendo wrote:

Hey millions
If you buy time, then you can weather any financial storm without being out of pocket. Assuming of course that you have sufficient equity in your properties to buy that time. The last thing you need is to fund it out of you own pocket. Check out the Equity Charge calculator at The Knowledge Centre.
http://www.chan-naylor.com.au/

Hey Pendo,

Iv'e just finished reading How to Achieve Wealth for Life by Chan-Melvin.

Great reading

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

September 21, 2007 - 1:35 pm

I have spent a whole lot off time reading investment books and watching property investment DVD's lately to learn how these people succeeded in becoming financially independant. The one thing all these people have in common is they are positive people, they walk the talk. If you want to be succesful in any chosen field in life surround yourself and learn from positive people. If you listen to negative, pessamistic people guess what that's what you become. Stay focused, educate yourself always continue to learn and surround yourself with inspiring people and you have more chance of getting it right than hanging around doomdayers. An most of all if you want success you have to step out of your comfort zone and have ago.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

August 27, 2007 - 12:34 pm

Have you adjusted your tax with the ATO to reduce your weekly tax bill, might help with cash flow.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

August 27, 2007 - 12:29 pm

Just brought a place in Port Noarlunga SA, 3 bed home 6 offers in on property from 1st open. Missed out on the last two I put offers in on.
Went to an open inspection at moana on Sunday gone, was sold on 1st day, they had the open to advise people and get names I think.
I thought the property market was meant to stay subdude for another couple of years?

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

August 16, 2007 - 11:57 am

TheBish wrote:

Don't be too over cautious. Get a clear strategy – whether it be shares or property and ignore short term price movement.

If a share or property fits into you criteria – Buy it.

Don't procrastinate – I'm sure Kerry Packer never  did!!

If you can tell me when we have hit the bottom in the share market that would be great
I'm just researching Commsec Protected portfolio loan at the moment, a bit pussy I know but I figure better that way than not at all.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

August 16, 2007 - 11:09 am

crashy wrote:

history shows when stocks crash as they seem to be doing this week, money is pulled out of equities and is reinvested in property. thoughts?

For me times like this cash is King, but don't take your eye of the game as some good opportunities will be coming. 
Property and shares will present some good invesments in early 08, thats my belief.
I think everyone is going to get a lot more nervous before this all plays out, add one or two more interest rate rises into the equation to slow th economy and bam opportunities everywhere.
By mid to late 08 the Reserve Bank will start to lower rates, people start to feel good again and we are off and running.
Well thats how I hope it all to pans out?

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 26, 2007 - 10:36 am

Thanks for the heads up info, might just check out the recomendations.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 26, 2007 - 10:28 am

I think the aging baby boomers will create a massive surge in immigration beyond the high levels we are already experiencing.
In SA alone it is estimated that over the next decade 380, 000 jobs will need to be filled because of the retiring boomers.
The only way these jobs will be filled is by increasing immigration, skilled people who bring a reasonable amount of money with them. So they can afford to buy into the housing market which will feed into supply and demand problems.
The older people I've spoken to have no intention of selling their family home and they are in good health. So they should have many years of happy retirement.
So for me I think this will be the basis for substantial returns on property over the next decade and I guess this will be duplicated around the country.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 26, 2007 - 9:55 am

foundation wrote:

a free man wrote:

Foundation you really should get out more.

I'll take your advice on board. You just need to understand that I approach all aspects of life in the same way – with skepticism (this is a scientific method, not a dirty word. Google it, it's easily learned; "scientific skepticism" or "critical thinking" should get you started). It took me all of 2 minutes to dig up the facts and bust up a couple of the most prevalent myths about property. I think this is a better approach than basing decisions on the misinformation or misunderstanding of others.

Cheers, F. [cowboy2]

Foundation when I said you should get out more, what I meant by that is I believe in hitting the streets, talking to real estate agents, going to auctions and attending attending rental property inspections. For my way of thinking this is a better way of determining the current market.
I believe stats are important but they are a reflection of what happened and not what is happening.

Regarding vacant dwellings, I only concern myself with 2 types of vacant houses;

1. The ones that are available to rent, given most large cities are below 1.5% vacancy rate I'm happy with those stats.
2. The other number that concerns me are vacant houses that are for sale but the owner can't sell them, the areas I'm    looking in to buy my next IP haven't got this problem as houses are selling very quickly.

I think high levels of immigration have a direct impact on house prices but then that should be another thread.
At the end of the day we all approach investment differently and have different ideas, I don't believe you should be shooting people down in flames because their ideas don't match yours. The only exception I would apply to this rule is where someone has offered totally irresponsible advice to someone seeking advice. Then experienced investors should offer a wary comment?

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 24, 2007 - 7:38 am

foundation wrote:

a free man wrote:

I believe that with such an undersupply of homes being built and the lowest vacancy rates for decades that property will be more resiliant in the next recession.

Hi Free man,

I'm just wondering why you think there is an undersupply of homes being built? Did you arrive at this conclusion based on your assessment of all available evidence or did you read it in the news? And if you read it in the news, did you check that the source didn't have a vested interest in convincing the public that there was an undersupply?

I've looked at the stats and come up with the opposite conclusion. I asked the question "does the net household formation rate exceed the building of new dwellings?"

The recent census results certainly don't show any undersupply. To recap the relevant ones:

• Average household size unchanged at 2.6% for both 2001 and 2006 census
• Vacant dwellings markedly increased from 717,877 (9.2% of all dwellings) in 2001 to 830,376 (9.9%) in 2006

Source: 2006 Census QuickStats : Australia

The first statistic shows clearly that the rate of construction has at least matched the rate of household formation. The second shows that the rate of construction has in fact exceeded the rate of household formation. Not only is there no undersupply, there is an oversupply based on fundamental measures.

It also shows that the 'immigration causes higher house prices' argument which resonates so well with the public is a furphy.
It also shows that the 'State government are undersupplying land' argument is a furphy.

Cheers, F. [cowboy2]

Foundation you really should get out more.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 24, 2007 - 7:34 am

Tysonboss1 wrote:

a free man wrote:

 They went on to say maybe this will be a one in a hundred year resource boom? Who knows but imagine if they are right what will that do to house prices? You should check out their site great for research.

If you believe there will be a one in a hundred year resourse boom, buying property isn't really the best way to take advantage of it,

If you want to ride the back of a mining boom, invest in mining companies or companies offering services to mining companies.  

Hi Tysonboss1, I do invest in mining shares as I believe it's best to diversify my investments. As for what has a mining boom got to do with house prices, WA.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 23, 2007 - 12:06 pm

Hi sunsetred,

I agree with devos comments with regards protecting yourself. Everyones circumstances are different, take me I earn an average wage but my job is very secure even in a recession I would still be in my job. So I take this into account when I work out how much equity or cash  I want in reserve for when we have a economic slow down. The good thing is everyone has to live some where so as long as your tenants remain employed during a recession things should be reasonably ok.

With regards to the resource boom I was reading an article last night about the resource boom, fat prophet stockmarket research says the party might only just be getting started. They went on to say maybe this will be a one in a hundred year resource boom? Who knows but imagine if they are right what will that do to house prices? You should check out their site great for research.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 22, 2007 - 1:39 pm

Great thread, it's good to read all the valuable advise.
Before you sell the house you should read Michael Yardney's book, Grow a Multi-Million Dollar Property Portfolio.
It has completely changed my views on selling property. I now think why sell a property when you can access the equity you have built up in the property for your next project. And the beautiful thing is your equity continues to grow on your full holdings not just your realized gains.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 22, 2007 - 12:09 pm

I went down a similar path to yours, done a reno then sold it, brought a new car because the money was there.
I do things differently now, I hold the properties and buy another one using the equity I,ve built up. This works better for me, takes away the temptation to spend money on things I don't need.
But hey everyones path is different, not preaching though. I spent countless hours reading different topics on this forum and books, for me it now makes sense to hold my properties.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 22, 2007 - 10:43 am

I believe that with such an undersupply of homes being built and the lowest vacancy rates for decades that property will be more resiliant in the next recession. Like any investment you need to have plans in place to get through financially challenging times. If you sell your IP's your going to pay CG tax, the question to ask yourself, are the value of my IP's going to drop in value more than the loss you will incure through tax.
Also what if you sell your properties next week and you miss out on some impressive gains because the recession never came?

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

July 20, 2007 - 2:09 pm

Thanks for your thoughts, I think I'll make sure a body corporate is in place before I sign on the dotted line.

[dreamingMember@dreamingJoin Date: 2003Post Count: 42]

June 7, 2007 - 4:36 pm

I use to think how can houses keep going up like they have in the past, then I read an article about home ownership. The fact that 70% of people are currently in the housing market either buying or own their own home plus investment properties. Then take into account people on average sell their family home every 7 to 10 years, so by upgrading their home this puts upward pressure on well located property. Location Location Location.