DD,
Originally I hit the quote button, wanting to quote your first paragraph, but then I re-read your post, and though no bugger that; the whole thing is worth mentioning!!!
I cannot agree more, beautifully put!!!!!!
Let those who are sitting there contemplating their navels, it will be them who run the risk of being left behind whilst those who are seizing the opportunities are reaping the rewards. If those people think the down market is here to stay for any great length of time and so choose to sit, LET THEM!!! All the better for me!!!!!
True, it is a different scenario in different states, some are better off than others, but OVERALL “realistic” selling prices are being achieved, discounts are possible and it is a smart investors buying time!!!
The key HOWEVER is (as I have said in many posts) is for investors NOT TO OVER-EXTEND themselves FINANCIALLY, but if they can afford it, now is the time to buy.
Good on you DD….I applaud you!!! Not many in here it seems would agree with you; but I most certainly do!!! [medieval]
Jo
I think it’s a bit presumptious to assume people who believe we are heading into a very flat and/or negative residential property cycle are sitting around contemplating their navels. Without making presumptions of what others are doing, I can tell you residential property is only a part of my investment portfolio. It’s a part that has worked very well for me over the last 5 years but it’s time to reduce it significantly as I see the boom is over.
Thinking that it’s always time to buy is a bit risky. There were a lot of people saying the exact same thing in April 2000, the month after the dot.com crash happened. Sure, there might be some choice pieces there, but I am confident most places can’t be bought cheaper in the near future.
Again, my comments are about how I see the market and are general in nature. I have refrained from making presumptions about people who take a differing view on the matter.
oh, and Jo, using CAPS is considered shouting. If your intention was to shout those words out, then thanks, but my hearing is more than fine.
Sorry Baloo, no shouting was intended, my use of capital letters is merely to emphasise, however I will attempt to refrain from doing so, hence spare your (and those of others) ears from any unncessary strain!
As for being presumptious; maybe so, but I call it as I see it!! If you don’t like my doing so, that is your call; my intention is not to offend, if that has been the case, I wish to apologise. It may be highly opinionated, but if it means that people will re-consider, then it has served it’s purpose.
With respect,
Jo
No offence taken at all. I just sometimes find it difficult to have a rational debate on facts, opions and thoughts when one side of the debate decides to make assumptions about the othersides actions.
Hate to disillusion you Baloo, but that happens for the most part of any debate!
It is not the right way discuss a matter certainly, but nonetheless it happens. What you call presumption, I call fact, now how do you prove which is the correct description of what is actually transpiring??? The reason is quite simply, because it (the truth) is reliant on one’s individual perspective of what it is!!
Cheers,
Jo
P.S. I have chosen to “highlight” my words of emphasis, hope that is more fitting.Baloo baloo oh how sweet it is to have informed discussion with someone like yourself who cries foul if a forward thinking person like Jo or myself contribute. Unlike you where property is only a small part of your portfolio, the original poster seems to be a novice and with need of a bit of impetus to get their act together.
Great you have an opinion and if you share it, we all have something to read if not be informed by. I personally only have houses and units and townhouses so for me his is all to relevant not to help people when I see them floundering, with help like yours. Go on excourage people to do nothing. I’m with Jo, buy and have something to worry about and check on and maintain and pay rates on and get tenants and deal with property managers, liase with trades people and GET YOUR BLOODY FEET WET!!![just for you Baloo].
Everyone else have a nice day as I am.
Happy for the healthy discussion.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Jo,
It was the ‘navel gazing’ & ‘doing nothing’ comments that I felt were presumtious.
DD,
I’m not sure why you think I cried foul. I’m stating my case about the market and how I see them. The only issue I raised was with the assumption that anyone not actively adding property now is doing nothing.
Back to the initial debate. The reasons I have chosen to put a hold on purchasing properties now are:
* In general we are seeing prices flatten
* In many areas we are seeing prices reduce
* Interest rates are starting to rise off their record lows
* Media hype has shifted from boom to gloomAnyone that has even the most basic understanding of investments cycles can see we’re at the end of big property boom. But if you are knowledgable enough of the market that you are confident of still making money in these conditions, then good luck to you.
But I really don’t think it’s a wise time for a novice to enter.
Originally posted by Baloo:Jo,
It was the ‘navel gazing’ & ‘doing nothing’ comments that I felt were presumtious.Baloo, if you frowned at these expressions, I think you need to really ask yourself “why”?? From what you’re saying it is not so much the words I used, but the meaning behind them that upset you (i.e. the doing nothing). I cannot change how I see things, and I should not have to for the sake of a “debate”. I am just expressing my opinion!!! You are entitled to your opinion Baloo, as I am mine. My thoughts are my own, and if you do not share them, that’s fine, but I am entitled to them no less surely?? Please, can we now leave it at that, so that this difference of opinion doesn’t get out of hand??
ok.
my ‘frowning’ of the meaning was because the thread was started by someone who is thinking of going into the market but was wondering about the timing. I felt the response by you and DD implied it was either “Buy Property” or “Do Nothing”, there are no other choices and if someone isn’t buying property then they are doing nothing.
I hope I have cleared up why I latched onto that thinking and spoke against it. I have no further desire to discuss this side issue in public anymore. PM me if you feel the need to continue it with me.
I agree with Baloo. We are at a point where interest rates are on the rise. As interest rates rise property prices fall as the cost of owning them goes up.
Read the following article in todays Age –
A potential interest rate rise will be back on the agenda when the Reserve Bank board meets next Tuesday after the release of figures showing a surge in job vacancies and credit growth.
The article can be found – http://www.theage.com.au/articles/2004/07/01/1088488095509.html
I am not sitting on my navel as you so put it – so please dont say that about others that dont share your view. I am looking after my existing portfolio.
I recall periods of years where property prices went no where. I believe we will have a period like that. I dont reckon there is a hurry to purchase now.
The US economy is expecting rate rises of .25% each month for about the next 4-6 months. So their rates may increase by about 1% by Xmas. And if the people here in Australia keep borrowing then we may see a rate rise here too. Especially on top of high job vacancy rates.
Anyway – thats why some buy and some people sell. Your buying and I just sold one recently.
Baloo,
I hear ya as to why you are holding off. For me, though, it is about purchasing in a flatter market- not for CG- but to buy properties that are now affordable (and were inaffordable during the boom). Because I am not purchasing for growth in the next few years (I doubt there will be much growth personally), then i’m also a little more focussed on yield, whereas usually, that ia a minor consideration for me.
I’m happy to purchase and then wait out 7 years or so, whereupon my property will be well in the process of being paid off, and may have achieved some CG. Actually, i am not hugely concerned about CG or yield- i just like owning properties- hehe. I’m a collector
kay henry
if i saw a really good realestate deal ‘now’ i would buy. but really good needs to be discounted to spot. ie it needs to reflect where i think the market will be in 12 months. you will find that the market has already factored that in to some extent..
but generally there are great old saying like ‘the trend is your friend’ and there is overwhelming evidence that the market is in somekind of fall. and the fall could be relatively huge so if your gonna buy make sure that you have all the possible consequences covered.
in the commodity market theres been huge money made and lost in the last 12 mos depending on the timing that you entered the market. shareholder although like it when you make a windfall, absolutley hate it when you lose. so what we have seen is the rise of ‘risk management’ proffessionals as being centreppoint to trading activities. so we as property investors can learn by this. sure buy if you can but have risk mgt strategies to help you avoid the land mines along the way…
so good on steve on his latest 1 day seminar. just on that. sometimes one just cant win
steve has copped some critism in some forums for this upcoming seminar. althou the wording of the event was dodgy (for us cynical australians – rememebr we are not americans) i think the seminar is built around a sound premise.
if he didnt do this seminar and the market dropped he would be accused of not helping people to safeguard there investments. yet now that he is doing this seminar people critisice him for doing a backflip and somehow admitting that his startegies were wrong.
steve – with some people you cant win..
keep it real and the rest will look after itself
cheers
Baloo,
No need to PM you; you have the right to your opinion as you do the right to frown upon any comments made by me or anyone that you feel is expressing themselves to the contrary. That is the priviledge of free speech, and my intent is neither to make light of such, nor to offend in the process.
Yack,
My husband works for the Age, so I get the news well before it is in print, but thanks for drawing my attention to it. Furthermore….
I have the right to my opinion, and to those of you who do not share it, so be it, I do wish to convert anyone to my ways of thinking by any means.
Viva la difference!!!
Nonetheless, I wish to apologise if my “presumptions” views/choice of words, or any part of my post that may have offended or upset anyone, that was not my intention.
Kindest regards,
Jo
interesting, deflation is still a real possibility…
I can’t see a lot of room for tightening rates too far.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Originally posted by DD:Baloo baloo oh how sweet it is to have informed discussion with someone like yourself who cries foul if a forward thinking person like Jo or myself contribute. Unlike you where property is only a small part of your portfolio, the original poster seems to be a novice and with need of a bit of impetus to get their act together.
Great you have an opinion and if you share it, we all have something to read if not be informed by. I personally only have houses and units and townhouses so for me his is all to relevant not to help people when I see them floundering, with help like yours. Go on excourage people to do nothing. I’m with Jo, buy and have something to worry about and check on and maintain and pay rates on and get tenants and deal with property managers, liase with trades people and GET YOUR BLOODY FEET WET!!![just for you Baloo].
Everyone else have a nice day as I am.
Happy for the healthy discussion.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
I see all your messages as positive as everybodies opinon is relevent as was stated, it all depends on areas, supply and demand. only right time to buy is when value in product and ability to service loan.which is why most people bork would you not say so?
Sorry Kojo,
Excuse my ignorance, but could you tell me what you mean by “bork”???? [blink] Maybe it’s late, but I am not familiar with that one!!!
Jo
I think Kojo means “balk” or hesitate.
kay henry
Ohhhhh now I see, yes that makes sense; thanx for clearing that up for me Kay [thumbsupanim]
Cheers,
Jo
DD – yes you’re right – the original poster (moi) IS a novice.
Hence my initial question. This looks like a great forum for the sharing ideas – and I wanted to gauge the opinions of others. Not see the thread degenerate as it did.
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