Anyone got 10-20 yrs prop invest experience

well, that knocks out anyone under 35-45!

But young investors- i still respect ya!

kay henry

Bugger! I’ve only got 9 1/2 years experience. Oh well, not going to be listened to! []

Cheers
Mel

yack,

I bought my first property 9 years ago. Had I attempted to sell it for 3-4 years after that, I would have lost money on it. I was in a divorce situation and was panicking a little in dealing with the responsibility of a mortgage. Re wasn’t “fashionable” back then, but my friends and I were buying into RE and there were no price movements- except downwards – for any area (in my region) that wasn’t unique. The research popers written at the time on median prices of RE used to say things like “Prices down again” as the headline.

I think the way to deal with negative growth is to ride it through. Some might think the people who have made money in this boom are some kind of “heroes”, but really- i remember my friends and I wondering why we had bought RE when our values had fallen. We weren’t considered heroes then…

Buy and hold was the strategy that has made money for those who had RE back then and kept it. But I feel the market has changed- and the state of RE is never gonna be the same. I don’t believe prices will *necessarily* double again in the next 10 years. But I believe people who buy when there isn’t CG just need to hold on- despite divorce etc. Given that the boom is over, it has to now be a buy and hold strategy- huge CG is in the past- slow and steady for the future.

I probably don’t fit your criterion for the 10-20 year investor, however… I do know about RE prices falling- soooo glad I didn’t get out then- I’d have nothing now if i did. And it wouldn’t be a case of “the one that got away”- I would be regretting “the one I *gave* away”.

kay henry

Bought my first investment in 1978. A unit buy and hold.
Back then you had to beg a bank manager to give you a loan. How things have changed.

I retired in 1998 and now live quite a nice lifestyle from my properties. I guess I’ve done most things. Renos,buy and holds,developments. I even have a few wraps which despite all the negativity you see have worked very well for both me and my purchasers.

I well remember when the government banned neg gearing. Some of my best buys were in those days and the times of 19%+ interest rates in the late eighties were interesting too.

Property has been the flavour of the month quite a few times in the past few decades but I dont see this as much different now. Just another cycle but with the information revolution as new influencing factor.

Where to buy, regional or cities? I think you can do well out of both. Just assess each deal on its merits and go ahead. Taking action is where most of my peers missed out. They are still working jobs they hate with only their PPOR to show for a lifetime of work. Their favourite lament is “If only…”.

Good to see a lot of young people on this board having a go.

I purchased my first IP in 1991 in Canberra and roughly around the same time purchased 2 more investment properties off the plan. They were all negatively geared. I thought this was good until John Howard (thank you John) cut back on the Public Service. I saw the three properties virtually half in value over the coming years. I just held on and tried to rely on the rent and tax returns. The market came back like it always does and eventually the 3 properties doubled in value from the price I paid. I think Jan Somers is right – Just keep buying. I am now buying for yield. I don’t care where it is.