All Topics / Help Needed! / Housing boom is busting

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of blogsblogs
    Participant
    @blogs
    Join Date: 2005
    Post Count: 418

    http://www.news.com.au/heraldsun/story/0,21985,23594829-661,00.html

    DOnt they say the booms start from the middle and work their way out, and the busts start from the outside and work their way in!!

    Giddy up-just gets better and better!! I wonder how all these fools with massive mortages are guna survive with petrol $1.60+, interest rates 10%+ and infaltion running over 4%!! Im gunna enjoy buying some properties in a year or two!!

    Profile photo of Jon ChownJon Chown
    Member
    @jon-chown
    Join Date: 2007
    Post Count: 254

    Booms and Busts are just an integral part of investing (be it housing or shares).  I can't help wondering how many investors will recognise a good deal when it stares them in the face or will they be the same people who wait too long and miss the boat.

    I also find this part of the report particularly interesting.  While house prices declined, the median price of units in Victoria remained static at $312,500 and the price of vacant land rose by 0.8 per cent. I suppose that this supports those who suggest that buying houses is better than units as an investment because "land appreciates and buildings depreciate"

    Profile photo of diclemdiclem
    Member
    @diclem
    Join Date: 2003
    Post Count: 537

    Hi, I don't think the figures add up…
    Inverloch falling 13% from 305,000 to 280,000 ….. 13% of 305K is 39650….. the 25K drop they've shown is 8.2%
    Anglesea from 440K to 420K equals a 4.5 % drop, not 9.7% as they stated.

    Is my maths way off the mark?
    Sue

    Profile photo of blogsblogs
    Participant
    @blogs
    Join Date: 2005
    Post Count: 418

    "or will they be the same people who wait too long and miss the boat."

    Jon I think we have a loooooong time to go before we run the risk of missing the boat lol. Do some reading mate-just the tip of the ice berg at the mo. What do they say about those who fail to learn from history are bound to repeat its mistakes?

    Profile photo of Scuba37Scuba37
    Member
    @scuba37
    Join Date: 2008
    Post Count: 3

    [
    Giddy up-just gets better and better!! I wonder how all these fools with massive mortages are guna survive with petrol $1.60+, interest rates 10%+ and infaltion running over 4%!! Im gunna enjoy buying some properties in a year or two!![/quote]

    While you "enjoy" waiting for the courage to actually buy a property over the next year or two we will enjoy your attempt as using the English language.

    Lots of us have massive mortgages but if the right planning has been done then this usual cycle in any investing venture should not hurt too much. The $600 000 I have added in equity over the last 3 years and 50k+ a year of rent I have enjoyed receiving will hardly be undone by this fairly standard cycle in the property market.

    I wonder if our grandparents would have called us fools for paying 500 000 for a property in this day and age when they were paying 20 000 in theirs?

    Its all relative and where there is a will to succeed there is a way but you have to be in it to win it.

    Good luck!

    Profile photo of blogsblogs
    Participant
    @blogs
    Join Date: 2005
    Post Count: 418
    Scuba37 wrote:
    [
    While you "enjoy" waiting for the courage to actually buy a property over the next year or two we will enjoy your attempt as using the English language.

    Bwahahahaahah love it!!! Thanks for the laugh einstien, just a little tip for ya-if you are gunna try to insult someone about their "attempt AS using the english language" at least try to get it right yourself. You mean attempt AT using the english language? bwhahahahf unny stuff…..

    As for having the courage to buy a property-I have plenty thanks, though only a fool would buy property at the moment when all indications say prices are guna come down. But hey you were probably one of the 'smart ones' who have boght lately and are now looking at a 10% decrease in your propert value? ;)

    It business mate-the name of the game is to make money-not to buy property just for the sake of being able to say Ive got x amount of properties…

    Profile photo of newbi2newbi2
    Member
    @newbi2
    Join Date: 2008
    Post Count: 227

    Its all about picking your market. The block of land I purchased in Novemeber for 90K has just had an offer of $150K, so I wouldnt go global on the doom and gloom front just yet. As usual, there is money to be made by those who get off their butts and look for it.

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.