Perhaps i should’nt, but I read cracker.com.au and the real estate forum there. From time to time I Read the forum – but i do not contribute. It seems to be filled with some alarming stuff – if you beleive it. Some of what they chat about makes me think twice about Property Investing, but you have to laugh at the most outspoken ones, some still rent.
The predicted impending recession, collaps of our economy, buy gold gold gold lol etc etc….
If worst come to worst, what will happen to average joe with a few IP’s and not much extra cash to play with to compensate recession prices and interest rates ??? Do we stand a chance?
I beleive everything comes in cycles, and must educate myself on economics. I wasnt activly investing in the late 80’s but interest rates were around 17% !!!
Personally, I doubt we would survive and will stand to loose it all should that happen again. How do you protect yourself?One thought was to invest in Cheap, low end + geared rental property; repayments would be less and should the sh_t hit the fan, people will be looking for Cheaper rent and we should still be able to hold on..??
hi – it’s a funny thing about chicken littles – most of them don’t invest in anything so I am always amazed why they are even interested in these things – is it just so they can say “i told you so” at the family bbq. Their only source of income will only even be a wage or social security payment anyway.
I Buy Property http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
DLPP dead on the money yet again thanks guys!!
For every winner and their path there are 150 doom/sooth-sayers i think the stats go…
You know if your coping flak or seeing that type of negativity your heading up stream and doing something outside the square or unusual and therefore invareably GOOD or WORTHY or creating FREEDOM from the things that BIND people to the YOKE of society…
Sincerely, Jarrah
0431 433 288
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Consulting & Climbing Arborists“S.O.L.U.T.I.O.N.S” Mentoring Groups!
momofthree,
I think some of the best advice we have been given in our PI adventure is to keep your plans to yourself. I guess there are alot of people who do not understand what you are trying to do and perhaps are a bit intimidated by your efforts to do something different!
We have learned that discussing PI with like minded people (our mentor, people on the forum) is the best way to stay motivated and on track. We have had people that have been negative or sceptical and we have learned to keep it light when we chat to them now!
So good luck, make your own sound decisions based on your due diligence and have fun![rolleyesanim]
All the best,
mapleleaf
Achieve the Dream!
If worst come to worst, what will happen to average joe with a few IP’s and not much extra cash to play with to compensate recession prices and interest rates ??? Do we stand a chance?Hiya mumofthree,
Being a mother of three, that’s exactly the sort of question my wife would say as well. I suppose my response would be something like the best defence to the situation you describe is to NOT
be average
hold a few IP’s
have not much spare cash to play withProbably sounds a tad contrite, and to not exhibit the above 3 traits will probably take some pretty smart and gutsy investing…..but then to shore your operations up from the situation you describe is a big challenge and probably requires a monumental effort to avoid the consequences of not putting in the hard yards.
We’ve found doing the exact opposite of our peers and purposefully not being “Average” has worked pretty good. We still get the jibes and snide comments from “Average” folks, but it’s ‘water off a ducks back’ for us now.
Your proposed solution has some merit, although I haven’t been around long enough to know if that will actually come up trumps.
Our strategy is heading in the opposite direction to yours, whereby we are heading uptown and signing up big national tenants on long term leases, where the rent is a very small percentage of their gross business takings. The fat margins between their profit and our rent is our safety buffer. Whether this strategy works either is also untested during harsh times…..i.e. maybe we are all in the same boat ???
Originally posted by mumofthree:One thought was to invest in Cheap, low end + geared rental property; repayments would be less and should the sh_t hit the fan, people will be looking for Cheaper rent and we should still be able to hold on..??
Just wondering, if the sh*t hits the fan do you think people in the city will pack up and move to the country where there is cheap accomodation?
If everything does indeed move in cycles why not protect yourself via having a large LOC secured against your Properties, fix your rates for a period and ride out the Bust part of the cycle when it hits..
Had a look at cracker.com.au , strange real estate area
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorhi Guys,
I beleive everything comes in cycles, and must educate myself on economics. I wasnt activly investing in the late 80’s but interest rates were around 17% !!!and so you should – and when the chicken littles point to the falling sky you will know that history shows that all markets will eventually stabilise and return to a growth path.
since 2002 friends and family in oz have been telling me that the property market is oz is going to crash and that it will be the worst financial disaster in history – well i’m still waiting to see it. It’s been 4 years and those people still have not done a thing.
fixed rate? not very popular but have a look at the latest products around that have the redraws and equity facilities that you may want as an investor. Lock in for 5 years if the rates are suitable – you should be able to buy a property or two each year and as your portfolio grows your holding costs will be “fixed” to a large extent.
try to identify assets that are growing despite general market trends. Whether it be stocks or property look at the fundamentals of the company, what is it doing now, what does it plan to do and how are they going to do this.
If it is a city you are planning on investing in look at new businesses and particularly like businesses opening up in competion to like. Once you see this happening across sectors eg retail stores, manufacturing, services it will be a sure indicator of growth. Check the anecdotal evidence with hard stats. I can’t see you crawling to the top of the pile by doing what everyone else is doing.
I Buy Property http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Originally posted by redwing:
Just wondering, if the sh*t hits the fan do you think people in the city will pack up and move to the country where there is cheap accomodation?Did I say something about country property??
“should the sh_t hit the fan, people will be looking for Cheaper rent ,..” does this mean they will move into the country? I doubt it.
[laughing]Originally posted by mumofthree:Perhaps i should’nt, but I read cracker.com.au and the real estate forum there. From time to time I Read the forum – but i do not contribute. It seems to be filled with some alarming stuff – if you beleive it. Some of what they chat about makes me think twice about Property Investing, but you have to laugh at the most outspoken ones, some still rent.
hi mumofthree, me dad of two, plus 2 black cats a schnauzer and a ducati…and mrs brahms (she sometimes checks in…)
i think its safe to say read heaps – listen to everything – and believe nothing…until you prove it correct.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbaneyes – and as for “still renting” try out the search function on this forum for some very long debates about that topic!!
I Buy Property http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Originally posted by mumofthree:One thought was to invest in Cheap, low end + geared rental property; repayments would be less and should the sh_t hit the fan, people will be looking for Cheaper rent and we should still be able to hold on..??
You have found these Properties in the City??
Great work if you have..
Redwing
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
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