BLOOD ON THE STREETS

Great post DLPP,

If you read through the threads, there are always people asking where the positive cash flow properties are or whether it’s the right time to buy or trying to predict whether we are heading for a boom or bust. While all these people are speculating and waiting for the right time, others are taking action NOW and profiting. [biggrin]

Market conditons, age, kids and money are all excuses not reasons!

The other day, I was speaking to a friend who said that it’s too difficult to get into the property market because properties are over priced and he can’t afford to. On the same day, I asked my mother in law why she didn’t buy more properties when she bought her home, her response was that she couldn’t afford to. The purchase price for her home was $12,000 in the 1950s.

The take home message here, is there will NEVER be a good time to buy. Property investors have a huge enemy that is bigger than rising interest rates or property booms or busts, that enemy is PROCRASTINATION!!! [biggrin]

Investment Property Management
http://www.adprop.com.au

I think you may be a little premature. We in Sydney are still slumping, and it looks like we have a little way to go. As Perth is still growing our Nat’l figures are skewed, and technically we are stagnant.

At the moment I will sit and wait, my next investment gets cheaper every day.

As Sydney lead on the way up, maybe it will lead on the way down.

Know many think Perth has two years to go and will hit 20-25% a year, so can anyone pick when a property in Perth 10 klms out of CBD centre will pass its Sydney counterpart. As we go down, and Perth goes up it must be getting close.

What will Perth do next.

Amazing that investors are flying around the world to find those cash flow positive properties that will change their lives, when the properties are seeking are in their own backyards. Firstly , acheiving a positive cashflow property in Tassie that nets $50 per week will not change a life!!! How many do you need to retire ?I am not a negative attitude person , but i do find it a farce to consider creating a $60K + investment to make $50 per week. A few more car accidents in Tasmania will cause negative population growth, the only reason for capital appreciation is the disparity between the ‘mainland’ and Tasmania. Ever played musical chairs and they add chairs every time they stop the music ?

There are developers (in particular that are desperate for sales~literally). Properties in Melbourne and Sydney acheiving 7% + yields.

All of these ‘property guru’ investment tips on how to make millions from cashflow positive properties, is a simple ploy to encourage investors into an area , as they are selling the properties and cashing in on the capital growth. This is just an opinion , but what would I know , I am just a dumb electrician.

Consider the current situation of petrol prices and where most people work. Also consider what is the most expensive real estate in other major countries around the world. If you can answer this basic cryptic question , then you have the answer…

How is $179K in Collins St in Melbourne and $300 per week , not bad 4 a blue chip location (outgoings by tenant and residential property). I looked at properties in the Docklands in Melb on Monday , asking price is $340K and tenanted for 3 years at $500/wk , i am sure the savvy investor could pick this up for circa $300K.

I also purchased a 3 bed townhouse in Richmond for $550K , bank value for finance came in at $800K. I tenanted it in 1 week at $600/wk , not a huge yield but i am happy having blue chip investments…. and many more

Remember yields are reflective of the cost of money . One persons perspective is different to the next ! It is possible to get 1% off for the life of the loan, the banks are also negotiable !!!! I have recently secured a rate of 6.57% (1% off the standard variable). Its not what you know it is always who you know.

Cruel, brutually, cruel ……..but true.

Hi, your posts are interesting. Last Christmas, my sister gave me dire warnings about my pending residential property redevelopment. She said all the experts predicted a huge crash.

I have since ‘gone slow’ but could not resist buying another property.

The purchase price is $223000. It is let at $220 a week. I have drawn up sub-division plans to build a house for a total cost not exceeding $160000. When the project is completed, the total cost should be $400000 with an estimated value of $500000. It should be completed in 2 years. The reason for the delay is that I’m held back by the other project. I’m OK to endure the -ve $3000 a year in holding costs.

This was on 1 May 2006.

Property prices can crash for sure. However, there is still a dire shortage of low priced houses. My take is if I can still find $200000 houses within 6km of a city of 1m in population, and the median metropolitan house price is $285000, I can still ride out a crash.

A cheek in tongue comment is I will believe property will crash when I see people no longer live in houses!

Kum Yin

Am I alone in hearing a faint tinkling noise that sounds vaguely like warning bells being muffled by the industry VIs?
Without meaning to hijack this thread, I’d be very interested to know the proportion of people here who think this townhouse is worth $550k, vs those who think it is worth $800k…

F.[cowboy2]

i sense sarcasm [ohno]

do you have any great deals you recently done?

Redbling,

I always thought it was more about what they think you know about what they did that they shouldn’t have done. Even if you don’t know if and what they really did.
Or even if they didn’t really do anything but think that there may have been circumstances that may have been photographed that could have implied their involvement in things that they had nothing to do with.

Lifexperience