I have been looking for the investment property for 2 years now and still looking. Steve and Nathan’s property achievement stories taught us to buy property at low price. But at current market, there is no way to buy property under market price and in the opposite way, we have to buy them over the market price. When Steve bought his first properties in rural area, the house prices just double in a short time, then he moved to buy units, then NZ, it seems like whatever he bought, the house price just increased massively when he sold them in a short period.
I’m not sure what others will say but there is an element of truth in what you say. Back 15 years ago you could have bought anywhere and made a profit – the amount varied though. But the current market is much tougher and everyone wants to get rich off property in a short time frame. I don’t think it’s as easy or realistic anymore, but it can be done it just takes more effort and a longer amount of time.
Look for the gems because they are out there. Maybe not like Steve’s did initially, doubling in a short time but it’s the ‘non-standard’ properties that sometimes deliver exceptional returns and outcomes. You just need to think outside the box.
I can sense frustration, so I would love to be able to help…. but I am struggling with this from you:-
But at current market, there is no way to buy property under market price and in the opposite way, we have to buy them over the market price.
I am trying to understand just what you might be seeing that has you saying this. Can you add a bit more about WHAT you are looking for, and WHERE? Maybe you are just looking for the wrong item in the wrong locations?
You’ve missed some incredible buying over the last 2 years. Have you joined any investor networks apart from this one? There is at least one forum I can think of that has a huge amount of information and network options to help you buy. You may need to adjust your expectations about price etc, but there are still many opportunities currently for making money.
When the market is expensive (depending on how you measure it) an investor must be patient. Warren Buffett stay out of the stock market for 3 years during the tech boom in the late 1990s. Do you have the temperment to sit on your hands? As Charlie Munger says he get pay by being patient and something in the line that inpatient what get most investor in trouble. In regards to mentioning housing are over price it really depends on how you are comparing it to (eg income to house price, debt to GDP, increase debt, ect) if you compare the returns base on interest rate they may be consider cheap. Potentially cheaper if interest rate continue to fall. As George Soros mentioned 7 years ago we are in an age of currency wars it is hard for Aus to remain competitive (particularly in our export driven market) when our interest rate is high (relative to other nations). I am now just ranting. Sorry
Wadez words above struck a chord with me – the words “Be patient” are easy to say, but I wont say them to you….
What I do want to say is that I heard Steve teaching recently that the property goes in cycles, and that cycle includes a flat price period that can make up the biggest part of the cycle (70% is common). Now, when that happens, you may be forced to be patient IF you are only investing in one area. Or, you can look for other areas that are in another part of their cycle.
Search for the “Property Clock” to see which areas are at what “time” in their cycle. Areas that are at midday or 1pm have already peaked and are likely into their “flat or slight drop in value” timeframes. Instead, go looking at those that are around 5 to 6 o’clock, and even 7 o’clock and later. These are the areas that are looking at the beginning of (or are already in) the “boom” part of their cycle. These are the ones whose value can likely increase over the next year or two.
Make the property cycle your friend and it might MAKE you some money (or at least SAVE some money for you).