Is there anyone NOT buying now?
I remember when there were ve+ properties in Frankston.
So why should I invest now in overvalued properties where growth is not expected for 3-4 yrs and yields are very low even those in rural areas which just covers expenses.
Your thoughts……Me I am waiting for a while.
Regardless of the market,
If a good deal presents itself, it is worth consideration.
Remember that you should make your money when you buy not whne you sell.J
I agree. As I am in this game for the long term, I dont see any reason why I would invest now. I am sure there are a few more years of no or very low growth.
yack- I hear ya. But if you are waiting for prices to go down really far, then you may be waiting for ever. I was just talking to a RE guy. He said a vendor bought a place for 720k in sydney- 2 bedder- and now can’t get 550k for it now that he wants to sell. Well, I can’t afford 550k anyhoo, but maybe that’s what it was worth in the first place.
I really understand your hesitancy about buying what appears to be overvalued. I wanted to pay around what I bought my first IP for. Then I realised that, due to the boom, I would have to buy regionally to pay anywhere near that price (my first IP was in the city). But I couldn’t expect to pay similar prices in an RE boom for what I bought in a flat market a decade ago. Prices are NOT gonna revert back to what they were a decade ago. I just cannot see that happening ever again. Just like wages will never be 2 pounds six pence again (we hope!)
I will be buying if the bank will let me. Absolutely I will. Doesn’t mean I will be paying 720k then trying to offload. It just means I enjoy RE and I’d like to buy at least 1 a year- despite the market conditions.
kay henry
Hi Yack,
Am currently looking, looking, looking so that when I see something that fits the bill we will be buying.
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
Hi Yack,
still looking at property, but not buying at the moment, but looking at some other investment vehicles, for the time being…
….though if a good deal comes along, will reconsider…
Cheers,
sisAs a couple have said, if the right deal comes along, its always the right time to buy. If you’re not buying simply due to general market trends, you may be missing out. Of course, any time’s a good time to buy a solid CF+ property [biggrin] If purely looking for capital growth, I’d be looking long and hard before buying anything. However, I went to an auction today in a seaside suburb that suggested good deals can still be had (or can now be had again) in CG areas.
Matt
yack,
“Is there anyone NOT buying now?”
If there are a lot of replies to the affirmative, will you feel a certain safety in numbers, kinda like, I may be missing out, but at least I will have company?
“I remember when there were ve+ properties in Frankston.”
so do you wish you’d bought then? And why? Because it is painless to hold a CF+ve property!
“So why should I invest now in overvalued properties where growth is not expected for 3-4 yrs “
Well I wouldn’t. Sounds like you are talking about the average Aus property right now!?
but Australia is not the only place to invest!>and yields are very low even those in rural >areas which just covers expenses.
True, but Steve and Dave started with properties that made only 50 dollars surplus a week on an 80 percent lend.
Sounds measly, but it’s replicable! So you can quite quickly amass a large number of them, then it really adds up, AND you are making the all important SURPLUS not NEGATIVE so you can keep going.
Buying a property you pay into to support it every week isn’t the only way to invest.
Hi Yack,
I wouldn’t worry so much about trends. If a deal is good it’s good! If not, then it’s not, regardless of the times. profound insights I know
Regards,
Sidel
I am not buying now. The over inflated prices are still out there. The fair value priced properties are the ones selling albeit slowly and at around 10% discount to the high prices of 6 months ago (the peak).
If a deal is good now, i think it will only get better in the next 9-12 months (you will be paying off a lower principal). People that dont think properties will get cheaper i think have a vested interest in making false claims (normally real estate agents
… Why do i think the properties will get cheaper again (though they are alrady falling to achieve a sale) and the reason is the US economy has been in limbo for the last 12 months showing good growth but without strong employment. The new jobs sector over their is now getting very strong and cyclicling (data release last friday) to support the strong econmic data. What this then means is a very probable interest rate rise over there, which means we will follow..this will be regardless of a slowing building or personal debt rate here. The need for overseas money invested in this country (as it is needed in the US) will drive our interest rate higher, maybe not much but enough to “scare” the market. We have only had .5% in rises and look how the climate has changed. Another .5% rate hike and it will be time to buy.This combined with a declining building market, the already high personal debt level will force house prices down.
Is there an edit button for these posts???
What a good question,
I am not buying today because it is Sunday!!
Yet I an buying on Tuesday next!!
head above water
Afloat
Buying in NZ! It was just way too hard in Sydney.
John [biggrin]
(I believe that later this year there will be no +CF deals left in NZ. If you’d like Steve’s MAP protege living in NZ to leverage your time and find the deals to build your portfolio quickly, just ask me!)
Can property actually go down in value? I thought aslong as you buy smart the worst it might do is stabilise for a while….
One a year is my plan!!
Turismo,
As a property investor, become a student of RE history- or recent history, at least. Most people here who have had property for over 7 years will tell you that property prices were flat as a pancake 6-10 years ago, in many areas, and that RE prices did drop considerably with neg growth in some areas.
The difference between this boom and ones before it, is that everyone knows about this one, and perhaps the internet have fuelled the boom, with places like the PI.com forum and somersoft for people to network. In my 37 years though, I have NEVEr seen property marketed to the sameextent. Plus there’s all the RE shows, reno shows, property mags etc. Seems everyone is into RE.
Propert HAS declined in some areas in 2004. People who bought some off the plan apartments may now struggle to get their money back, and some have forfeited their deposits because they are unable to derive a loan for the full amount. Look up Docklands melbourne in google.com.au and see what has happened to prices in some of those areas.
kay henry
I’m not buying right now – and neither’s my wife!
hmmm – is that a good way to judge whether to buy
I’ll update you when I know the date of our next purchase (in the next few months) so you can buy on the same day – after all, safetly in numbers!
Cheers,
Aceyducey
“Is there an edit button for these posts???”
yes! but you have to log in to see it!
cheers-
MiniYack,
Many people have stopped, a growth in the market coupled with a few intrest rate rises will do this. Many so called banking and property experts call this a cycle. Cycles are forced upon us for our greater good.( Ha Ha ). Some people like myself will find it harder to get finance. An extra .5% can have a big impact on peoples borrowing capacity. I say get out there keep looking keep making ridiculous offers.If you cna get the finance keep going. It’s all about learning how the market acts and reacts. Some people will find great buys out there as people scramble to sell at the top price and find that real estate agents have been bullshitting them.I’m looking at the market but cautiously. If I spot a great deal, why not buy?
CarLover.
Im still buying, infact i bought one this week, although im buying regional now to stay positive geared.
Regards Risky
If you want the rainbow youve got to put up with the rain!
… Why do i think the properties will get cheaper again (though they are alrady falling to achieve a sale) and the reason is the US economy has been in limbo for the last 12 months showing good growth but without strong employment. The new jobs sector over their is now getting very strong and cyclicling (data release last friday) to support the strong econmic data. What this then means is a very probable interest rate rise over there, which means we will follow..this will be regardless of a slowing building or personal debt rate here. The need for overseas money invested in this country (as it is needed in the US) will drive our interest rate higher, maybe not much but enough to “scare” the market. We have only had .5% in rises and look how the climate has changed. Another .5% rate hike and it will be time to buy.
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